Can I start depreciating my short-term rental while the pool is unfinished?
The rentable home and an unfinished pool may have different dates and basis schedules, depending on what is actually available to guests.
Establish when the home became available
An investor furnishes a vacation home, obtains required permits, publishes a listing, and accepts guests in September. The backyard pool is still under construction until November. Publication 946 generally treats property as placed in service when it is ready and available for its specific use. If the home really is available for rental in September, the unfinished pool does not automatically postpone the home's date. If construction makes the premises unsafe or unavailable, the facts point the other way.
Save the dated listing, booking calendar, guest invoices, local permit, insurance coverage, inspection records, and photos showing what guests could use. A marketing screenshot without actual availability is a weaker file.
Give each asset its own timeline
The pool, appliances, furniture, and land improvements are not one asset merely because they share a property address. Record acquisition cost, installation completion, and first availability for each material component. Do not place the pool in service based on the home's first reservation; document its inspection, filling, safety work, and when guests were allowed to use it.
A cost segregation study can help classify eligible components, but it cannot create a date earlier than the evidence supports. The pool's classification and recovery period need a property-specific review, including how it is used and connected to the rental.
Model the return before making elections
AE can reconcile the capital project ledger, rental start date, asset schedule, and guest use before calculating depreciation. Bring the closing statement, contractor invoices, property listing history, calendar, permits, and pool completion records. The tax model should also consider any personal use and the applicable passive activity rules rather than assuming a deduction offsets unrelated income.
Primary tax sources
Related AE Tax guidance
Review Your Facts With AE
Bring the transaction documents and dates to a discovery call. We can identify the tax questions, records, and next steps for your business or property.