Rental asset depreciation calculation

[czb]

We converted our primary home to a rental unit in the middle of 2020 and moved to an other home.

Earlier in the year, while we still lived there, we installed solar and replaced the fence. As I go through the steps to add solar as a rental asset for depreciation, I am asked this question:

Have you used this item 100% for the time for this business since you acquired it?

Though we started using Solar while we were using the home as our primary property, should I select?

Yes, I've always used this 100% of the time for this business

or

No, I have not always used this item 100% of the time for this business

What throws me off is the next question which is

Enter the date that you first started using it for business

If I said "Yes" and entered a date, does it mean, I used it for business 100% of the time since that date?

If I said "No", I am prompted to enter the % of time I used this for business in 2020 - which could be the number of days rented divided by 366. If I selected a % this year, will it default to 100% next year when I do taxes for 2021?

[ThomasM125 · Accepted solution]

You should indicate that you haven't always used it 100% of the time for the business. The date your first used it for the business would be when you first attempted to rent the house. You will divide the rental days by 365 to determine the percentage of business use.

I'm not sure if it will default to 100% usage in the following year, so you will have to review the asset entry again next year to see how it is being handled.