Can I can depreciation?

Question

Hello BP fam, I bought my first real property in Oct. 2014, am I able to claim deprecation for this time. I have read some places that have said you can not claim depreciation during your first and last year of ownership and I believe the IRS publication for residential rentals states the date of service begins the depreciation time.......

Please clarify, thanks!

Mark Simms · Answer

Here is what I found on IRS, Publication 946:

When Does Depreciation  Begin and End?

You begin to depreciate your property when you place it in  service for use in your trade or business or for the production             of income. You stop depreciating property either when you  have fully recovered your cost or other basis or when you retire             it from service, whichever happens first.

Placed in Service                                   You place  property in service when it is ready and available for a specific use,  whether in a business activity, an income-producing                activity, a tax-exempt activity, or a personal activity.  Even if you are not using the property, it is in service when it                is ready and available for its specific use.              Example:On April 6, Sue Thorn bought a house to use as  residential rental property. She made several repairs and had it ready  for                   rent on July 5. At that time, she began to advertise  it for rent in the local newspaper. The house is considered placed in                   service in July when it was ready and available for  rent. She can begin to depreciate it in July.

Placed in Service

You place  property in service when it is ready and available for a specific use,  whether in a business activity, an income-producing                activity, a tax-exempt activity, or a personal activity.  Even if you are not using the property, it is in service when it                is ready and available for its specific use.

Example:

On April 6, Sue Thorn bought a house to use as  residential rental property. She made several repairs and had it ready  for                   rent on July 5. At that time, she began to advertise  it for rent in the local newspaper. The house is considered placed in                   service in July when it was ready and available for  rent. She can begin to depreciate it in July.

Jeffery Griggs · Answer

@Jason L. I just purchased my first rental last year as well. My understanding is that the depreciation begins when it is put into service. I believe that I read where advertising the unit for rent constitutes putting into service as long as you do rent it. I'm not 100% sure but think that is correct. I suggest you discuss this with your accountant...I know I plan to. Hope this helps. Maybe someone will confirm or correct me?