Rental Depreciation

Forum|Forum|1 year ago
February 16, 2025
1 reply
18 views

First time claiming rental income and wondering about the best way to depreciate capital improvements. We had several major improvements while we lived in the condo prior to converting it to a rental (hot water heater, A/C unit, new windows and bathroom renovations). Is it best to depreciate those as separate assets so as to not have land costs deducted or depreciate them all together with the initial cost basis of the property?

Not A Product Question

AnnetteB6

Employee Tax Expert

If the improvements occurred prior to the unit being converted to a rental property, then you would not depreciate them as separate assets of the rental property. They must be added to the basis.

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