Bonus depreciation on a project split between 2 years

[Johnathan Simeroth]

BP community,

I'm looking for advice on how tax year timing affects my ability to take bonus depreciation and/or "expense" some of my capital improvements.

I purchased a duplex that needed a lot of work in 2021. I started a rehab immediately that will wrap up in early 2022. My payments to my contractor therefore started in 2021 (~130k) and I'll make the final payment in 2022 (~60k). I plan to use this property as a short term/vacation rental.

If the property won't be rentable/placed in service until 2022, I just want to confirm that I am still able to take some portion (as determined by cost seg study) of the 130k invested in 2021 as bonus depreciation in tax year 2022, right?