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Updated almost 8 years ago on . Most recent reply
In Service date vs. Conversion date for primary turned rental
I have several buy and hold properties where it's clear as day that the in service date is the date the property is available for rent. I'm a little confused as to how it works when converting a primary home into a rental.
Ex: Marketed for sale/rent and moved out of my primary home 7/1/16. I approved a tenant and actually rented the home 10/1/16. Technically, the home was rentable 7/1/16 so would that be the in service date? So any monthly bills such as utilities could be deducted post 7/1/16? In this example, what would be considered rental days vs. personal days for depreciation? The IRS (pub 527) is not very clear (surprise) on this considering how common a scenario it is.
Thanks in advance!