Hi,
We bought a piece of land and built a house with the intent of renting it out as short term rental. The construction completed in March of 2023 and we officially listed the property in Sept. When I tried to enter the information in Turbotax as a new rental property, the questionnaire only has the option to choose as a new purchase. Do I treat it as such and roll all the construction cost along with the furnishing cost as the cost of purchase? My understanding is that expenses becomes deductible after the property is in service. So the construction and cost of getting it ready become the basis of my rental property and depreciate over 27.5 years. The purchase date will be the date the builder turns over the key and the available date will be the date it is listed to the public. Is this right?