[kdawg22]

have residential rental property that is being depreciated over 27.5 years. in 2017, the property was only rented out for 2 months and then renovated for the remaining 10. In terms of the tax return, are you allowed to take depreciation on the pre-existing fixed assets during that 10 month period? I know the costs incurred for the renovation are not able to be depreciated until the property is renting again, but I am just not sure what happens during those 10 months on the pre-exisiting fixed assets.

[Recked]

I would let the pre-existing depreciation run, and then start depreciation on the new renovations when they are “placed in service”

If there is overlapping depreciation you might be able to write down/write off the assets no longer in use.
For example – if there was an HVAC system that still had years to be depreciated, but a new HVAC system was added when the building was renovated, you write off the old system as sold or scrapped when the new system is added.

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