Asset Entry Question - Date placed in service is year following purchase

Forum|Forum|3 years ago
March 17, 2023
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I have a vacation rental that is also my primary home. Each year I rent 4 summer months and live in it for the other 8. I am in the process of entering an asset on my Schedule E. The purchase date is 10/7/22. The first week of rental season starts May 7, 2023. I am at a loss as to how to answer the questions on the TurboTax interview, I.e. date placed in service. Is the asset reported on the 2022 or 2023 return?

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Best answer by DawnC

Can you clarify - you have a rental property on your tax return that you placed in service in 2014? And you purchased a separate depreciable asset for that property in Oct of 2022??

The placed-in-service date is the date the asset is ready and available for rent. If the asset is not available for rent until May of 2023, that is the placed-in-service date

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MonikaK1

If you did not place your property in service as a rental until 2023, then report it in the rental section of TurboTax on your 2023 return. TurboTax will ask questions about the date the property was purchased and whether it was used as a residence.

For tax year 2022, you can claim any mortgage interest and property taxes on your home if you itemize your deductions.

See IRS Publication 527 for more information.

See here for more information from TurboTax on rental property.

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finethreadsAuthor

Thank you for your reply. I placed It in service as a rental in 2014.