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Updated almost 2 years ago,
Using Bonus Depreciation on House Hack Residential Property
Hello, my husband and I purchased a 5 bedroom Residential Property (FHA) on September 2021. From September to February 2022 we renovated the property, from new floors, paint, appliances, etc. Beginning February 2022 we "house hacked" the property. Meaning we lived in one room and rented the other four, and common areas on Airbnb. After calculating the square footage we take up 17% for personal use and 83% for business use.
Now the question is, can we do a bonus depreciation from the renovations on 83% of the property? I understand that for Bonus Depreciation it needs to be an Investment Property, but in this case it is both. Thank you!