topic Primary residence converted to a rental property in Get your taxes done using TurboTax

Primary residence converted to a rental property

DJC69 — Tue, 24 Feb 2026 07:09:50 GMT

Our home of 20 years was converted to a rental property in August 2022. How do I add previous capital improvements dating back to 2004-2008, etc. to the basis? I can combine expenses into bathroom remodel, kitchen remodel, flooring, etc. Do I backdate? I assume the amortization would begin the date the rental was placed into service vs. the date the work was done. Is this correct? Thanks!

Re: Primary residence converted to a rental property

Mike9241 — Fri, 11 Aug 2023 19:05:24 GMT

when you get to the asset entry section for the rental, you'll be asked for both the date acquired/purchased and date placed into service (first use in business). depreciation starts with the date placed into service

Re: Primary residence converted to a rental property

Anonymous_ — Fri, 11 Aug 2023 19:35:10 GMT

@DJC69 wrote:

Do I backdate?

No.

You add up your initial cost basis (purchase price) and the cost of your improvements in order to get your basis for depreciation (i.e., it is one number).

Re: Primary residence converted to a rental property

Critter-3 — Sat, 12 Aug 2023 06:27:01 GMT

The cost basis is the lesser of the FMV at the date of conversion OR the total cost basis ( original purchase price + cost to buy + improvements made up to the date of conversion).