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Level 3
January 30, 2024
Solved

Client remodeled rental ADU then moved into it

  • January 30, 2024
  • 1 reply
  • 3 views

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%.  

 

    This topic has been closed for replies.
    Best answer by TaxGuyBill

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

    1 reply

    Level 15
    January 30, 2024

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

    Kevin1Author
    Level 3
    January 30, 2024

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