Should I depreciate the portion of a residential rental buyout of a partner when I will convert the property to my residence?

We own a residential rental with a partner. It was acquired through a 1031 exchange 2 years ago. This year we decided to buy out our partner with cash with the intent of converting the rental to our personal residence after the 2 years the exchange requires it to be a rental.

4/23-1031 exchange was completed. House was rented or available for rent from 4/23 through 4/25.

7/24- We decided to buyout our partner with cash. We now own 100% of the rental and it is rented through 4/25. We decided we would convert this rental to our personal residence after the tenants move out in 5/25..

For 2024 taxes, I am depreciating the original portion from the 1031 (relinquished property and excess basis).

Should I depreciate the amount we paid our partner to acquire the remaining amount of the house since we have decided to occupy the house after the tenant lease is up.

posted