Deducting a pool from a future AirBnb primary residence business?

[suncowiam]

If I build a pool in 2020 but plan to AirBnb my primary residence in 2021, can I still deduct the cost of the pool in later tax years?

Thanks

[MinhT1]

In 2021, when you rent your residence as an AirBnB rental, you can add the pool as an asset and depreciate it. Pools are considered as land improvements and are depreciated over 15 years.

You cannot deduct the full cost of the pool in one year.

[suncowiam]

Thanks

I just used the full cost of the pool as a basis from 2020 when I start renting in 2021?

[DaveF1006]

Yes, when you place the pool in service is when you will start depreciating.  This means the date when you declare you are ready for business and begin accepting rental requests.

[mk82]

What about a hot-tub/swim-spa?

And what if I only AirBnb for 3 moths out of the year?

Thank you!

[Opus 17]

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@mk82 wrote:

What about a hot-tub/swim-spa?

And what if I only AirBnb for 3 moths out of the year?

Thank you!

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When you place a property in service as a rental, you have to indicate a value for depreciation.  The value for depreciation is the adjusted cost basis of the property, or the present fair market value, whichever is lower.  The adjusted cost basis is what you paid for the property, plus the cost of permanent improvements (permanently attached to the land/building), but not including the cost of non-permanent items like most appliances.   For anything that is already part of the property when you first offer it as a rental, it's all included under the one umbrella of depreciation based on cost basis or market value. 

If you buy new appliances or make new improvements that are placed in service after the property is offered for rental, you can expense or depreciate them individually.  But there are different rules for a property that is mixed personal and rental use and you have to allocate the cost, usually based on the number of days the property was rented.  

[Carl]

what if I only AirBnb for 3 moths out of the year?

That may or may not complicate things. If you're going to be using it as rental and as personal use property every year, there's several ways to handle it correctly on your taxes each year. While TurboTax can handle it, none of the ways are simple. All of the ways require manual math every year on your part. Especially if your state taxes personal income. You may want to consult with a tax professional in your locale to learn the options available, and to enhance your understanding of "how this works" on the tax front.