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13
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1
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Samuel Kowalsky
1
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13
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Split use (personal/rental) for rental property - Depreciation

Samuel Kowalsky
Posted

Thanks in advance for your time.

I have a rental property that I purchased in 2018 and rented it out until July 2019, when the tenants moved out, and the apartment remained vacant for the remainder of 2019. At the beginning of 2020, I began using the property as a home/dwelling -- the property is in a foreign country and, since I did not have any work constraints, I wanted to do some work on it (former tenants and management company did not take good care of it) while visiting with some family in the area. I intend to start renting it out again sometime this summer.

I claimed depreciation for 2018 (amended return) and will claim depreciation when filing my 2019 taxes. However, I am confused about whether I will continue to claim depreciation for 2020--I imagine that, since it will be used for the production of income, I will depreciate it, multiplying the full annual appreciation amount by the fraction of time that it was actually in service (e.g., if I place it in service for half the year, I would take half of the 'normal' depreciation). That seems almost too simple -- I am not sure that depreciation can be used in such an on-again/off-again manner, but I imagine that I still have to claim depreciation while it is in service.

Thanks again, and I apologize if anything isn't clear.

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