When can you take bonus depreciation?

[Karen Tan]

Hi, we converted our previous primary into LT rental in January 2022. It’s been rented since. Purchased in 2018 at $325k, it is now valued at roughly $410k. Is it too late to get a cost seg and take bonus depreciation for our 2023 taxes? If not, what would be the value applied (purchase vs market) and bonus depreciation rate used (80% vs 100%)?

[Basit Siddiqi]

Bonus depreciation is based on the year that the property is placed into service.
Since it was placed into service in 2022, it would be applicable for the year 2022.

Furthermore, also factor in improvements made to the property from 2018 to the time it was turned into a rental.