Conversion to Short Term Rental

peteZ88 — Tue, 28 Jan 2025 21:49:53 GMT

I have a second home that I converted to a short term rental in 2024. For furniture, mattresses, and other contents such as appliances purchased in 2023, can I depreciate based on their FMV at the time it is placed into service.

Example: A sofa is purchased for$2000 for a house in July 2023. In January 2024 the property is converted to full time rental use and the sofa is provided as one of the furnishings. I determine the FMV of the sofa in January 2024 (date placed in service) is $1500. On my 2024 Schedule E for this propery, can I do a 5-7 year depreciation of the sofa’s $1500 FMV or choose to take a Section 179 deduction.

Re: Conversion to Short Term Rental

RobertB4444 — Tue, 28 Jan 2025 21:53:23 GMT

Yes, FMV is exactly how you should determine the value to depreciate. Just maintain the records for how you came to that value in case there are ever any questions.

@peteZ88

topic Conversion to Short Term Rental in Self employed

Conversion to Short Term Rental

Re: Conversion to Short Term Rental