This is a question I often get asked by business owners and rental property owners in the real estate industry. Depreciation begins when you place your asset in service for the production of income. An asset is placed in service when it is ready and available for a specific use.
For example, you purchased a house to use as short-term rental on January 1 and you make extensive repairs to the property to fix it up for rent. On March 1, the house was ready for rent and the rental property is advertised to be rented.

The rental property is considered placed in service in March because it was ready and available for rent. Depreciation will start in March.

Should you have any questions or need guidance, please contact a CCN Business Consulting
professional for assistance.