Author Topic: Date placed into service?  (Read 325 times)

blikeafox

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Date placed into service?
« on: February 05, 2018, 10:18:01 AM »
I bought a 2-unit rental property in 2017, and 1 of the units was occupied when I purchased it and continuously throughout the year. The other unit needed some work done, and I did not immediately advertise it as for rent. I assumed the date placed into service for that unit would be the date that I advertised, but as far as I can tell schedule E does not have a way to differentiate between when one unit and another were placed into service in the same property. I have some expenses that related to the whole property (like a new roof) that were done before the second unit was placed into service, so I definitely want to do deduct or depreciate those as appropriate, but has anyone run into this issue with a property? If I list the units separately, then I'm not sure how to account for expenses connected to both units. 

MaikoTsumi

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Re: Date placed into service?
« Reply #1 on: February 05, 2018, 11:00:26 AM »
What would be the benefit of not treating it as a singular property? 

blikeafox

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Re: Date placed into service?
« Reply #2 on: February 05, 2018, 11:42:59 AM »
None at all. I just worried that if I did there could be a risk if I were to be audited if I deducted any expenses for the second unit that were from before the date I actually advertised it. I guess I could avoid that by not deducting those expenses, but still using the earlier date.

MaikoTsumi

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Re: Date placed into service?
« Reply #3 on: February 05, 2018, 12:17:36 PM »
2 unit property. Like an A and B property at the same address? Duplex?  If one side is rented out, you're in service. You deduct/depreciate for the entire property. 




blikeafox

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Re: Date placed into service?
« Reply #4 on: February 05, 2018, 12:53:35 PM »
One unit is in the basement, and the other is on 3 stories above. They are the same address, so for mail, we use Address #1 and Address #2.