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Client remodeled rental ADU then moved into it

Kevin1
Level 2

Client remodeled an attached garage tuning it into an ADU.  

Instead of renting that new ADU, homeowner rented the main portion of the house and moved into the freshly remodeled ADU.    

Can I still depreciate a proportion of the remodel? 

I emphasize they are under one roof, they are not separate buildings.
Rental (main portion house) is 80% of area
Remodeled ADU is 20%.  

 

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1 Solution

Accepted Solutions
TaxGuyBill
Level 15

Does the remodel affect the portion of the house for the renters?  If not, no, that is not a rental expense.

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2 Comments 2
TaxGuyBill
Level 15

Does the remodel affect the portion of the house for the renters?  If not, no, that is not a rental expense.

Kevin1
Level 2

Yes, that's what I assumed and told the client, just checking to see if I was missing something.

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