topic Depreciating rental property that is used for personal use part of the year in Investors & landlords

Depreciating rental property that is used for personal use part of the year

solanita74 — Tue, 04 Jun 2019 20:14:19 GMT

I started using a property as a rental in 2015. Prior to renting it, I lived in it. In entering information for depreciation, I can't figure out if I should put the percentage of business use as 100%, or as the percentage of the year that I used it as a rental property. Putting in the date that I started renting it appears to account for the use of the property for only a portion of the year, i.e. lowers the deduction for depreciation.

Yes, putting the date that you started renting the proper...

SusanH — Tue, 04 Jun 2019 20:14:20 GMT

Yes, putting the date that you started renting the property will have TurboTax calculate the partial year depreciation.

A couple of things to note:

When you are entering your rental property, make sure that you check the box “I converted this property from personal use to rental in 2015” at the “Do Any of These Situations Apply to This Property?”

When you hit the screen, “Was This Property Rented for All of 2015?, say yes even though you converted it during the year; this is for the time you had it as a rental and doesn’t mean all year long.