Moved into rental property in 2023, moved out in 2024 and plan to rent again in 2025

mauiLynn · ‎March 5, 2025

We have owned a vacation rental since 2009. We moved into the rental in Nov 2023. Then moved out in August 2024 but didn't rent it as we were making upgrades. We plan to rent it again in 2025. My question is how do we handle the 2024 taxes? Since it wasn't available to rent all of 2024, do I just not file a Schedule E worksheet for 2024? When we start renting it again how do we handle the depreciation with a year missing in the rental schedule?

AmyC · ‎March 6, 2025

1. 2024 You will not file the Sch E for 2024 and depreciation will stop. Since your property did not sit idle, it can't be depreciated - as your personal home.

2. 2025 Your rental property will begin depreciation using the lower of fair market value or cost plus improvements minus depreciation taken.

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View solution in original post

AmyC · ‎March 6, 2025

1. 2024 You will not file the Sch E for 2024 and depreciation will stop. Since your property did not sit idle, it can't be depreciated - as your personal home.

2. 2025 Your rental property will begin depreciation using the lower of fair market value or cost plus improvements minus depreciation taken.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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Moved into rental property in 2023, moved out in 2024 and plan to rent again in 2025