Property depreciation deductions

Hi all. Hopefully, I can get some tax assistance from some of the experts. I bought a house to renovate and sale/rent in Feb 2006. Finished the renovation in late May. Advertised it FSBO and to rent the following month. Had two different accepted offers but financing fell through. Couldn’t rent it because I was asking too much for rent. Finally got a signed rental agreement(lowered the rent) in December but tenant didn’t move in until January so we modified the agreement. My question is can I depreciate the property and the improvements and use for deductions on my 2006 filing. If so, what is the best method? Thanks in advance.

You placed the property in service as a rental in June 2006. Even though you did not get a tenant in place until this year, you can still take a depreciation expense on your Schedule E for June through December.

You can find the depreciation schedules in an IRS publication on the IRS website. Your tax preparation software should also be able to compute your depreciation expense from the starting date the property was placed in service as a rental.