2nd Home to Rental --> When does depreciation begin?

[Kelly Jones]

I lived in my house from 2003 - 2012.  I moved into a new home in 2012 and kept this house for a 2nd home.  I will begin renting the house in 2023 (10 years after moving out).  Question is...when do I capture the value to calculate depreciation?  Would it be from 2012 when I moved out?  Or, would it be in 2023 when I officially begin to rent the property?  

I feel like it would begin in 2012 since I COULD HAVE rented it out if desired, thus I should use that value to begin depreciating even though I've missed 10 years (2012 - 2022).  I'm not worried about the lost depreciation if that is true...I simply want to be sure I use the right value (2012 or 2023) once I begin receiving rental income.  

Thank you!

kmj

[Yonah Weiss]

@Kelly Jones the depreciation would begin when you place it in service as a rental (2023 in this case) and your depreciation tax basis will be based on the original purchase price. 
Even though you 'could have rented it out'--you didn't, as you said you used it as a second home. 

[Colleen F.]

@Kelly Jones    This is the source.  2021 Publication 527 (irs.gov) pg 15. Basically what Yonah said plus any improvements is the basis. There are very few situations where FMV now will be less than the purchase price plus improvements.

[Basit Siddiqi]

You start to re-record depreciation when the property is placed into service. You need to also factor in the depreciation on the property when it was a rental originally.

best of luck!