When you renovate a rental property, you are making leasehold improvements. Even though you do not own the property ... The GAAP Rules of Leasehold Improvement Depreciation.

andresr/Getty Images For rental property owners, understanding depreciation ... capital improvements made before or shortly after placing the property in service. From this total, you subtract ...

you can claim the full annual depreciation amount of $9,091. Any significant improvements you make after the property is placed in service should be added to the rental property’s cost basis ...