Depreciation & Tax Implication on Current / Future Rental Proptry
Afternoon BP,
I am new here and excited to be here and learn from everyone.
Quick question, I am currently living in a condo which I own, and I am planning to rent it out in the future. Now, my AC recently went out and is going to require a replacement (around 5k to 7k depending on the brand I select). I am planning on moving out/buying a single family or duplex (not sure) in the next 3 to 4 months. If you're worried about how I've been keeping cool - I’ve been using an indoor AC unit which has been working well for cooling, but only cools 150 sq. ft (12%) of my place lol.
So, my question is:
1.) Can I replaced it now and after I rent out my place apply the depreciation? – Meaning I am currently living it, buy the new unit/have it installed then I’ll move out and rent it out, then apply depreciation.
OR
2.) Is it better to wait until I’m fully removed from my soon to be rental property, buy the new unit/have it installed, rent it out then apply the depreciation?
Many Thanks!
-Bill