I signed with a property management company on August 27 to run my previous residence as a rental property for a year. I was still occupying the house between August 27 and September 10 to do fixes and cleanup, got contractors and have receipts for fixes and cleanup done, keys given to management company on 9/15 after all fixes are done. So is the "in-service-date" August 27 when I signed the contract? What about fixes and cleanup cost between Aug 27 - Sep 15? Are these considered rental expenses? I am splitting them proportionally between "personal use" for the days I occupied the house (Aug 27 - Sep 10) and the days when it was rented in 2018 (66 days).
The in-service date will be the first day it was available for rent, September 15.
All the expenses you had before it was rented should be capitalized, either added to the rental property's basis, or put in a separate category, like "Start-up Costs".
To get to the capitalize-depreciate section:
1. Click Federal Taxes across the top.
2. Click Wages & Income across the top.
3. Click I’ll choose what I work on.
4. Scroll down to Rental Properties and Royalties.
5. Click Start or Update by Rental Properties and Royalties (Sch E).