I need to do some back years taxes, although I won't owe taxes, and am preparing for this year. I understand that the percentage of square feet of the spare room I rented out would be depreciated for that year, and usually at a rate of 3.636% each year for 27.5 years. What if there was a big gap in years when there was no rental activity? So far I've only rented a room out for 9 months - split between 2019 and a bit in 2020, and due to an unusual circumstance I have no taxable income. I did not rent the room out at all in 2021, 2022, nor yet in 2023, but I'm considering renting later in 2023. When counting the 27.5 years of depreciation, I figure 2019 is year 1, the ~ 3 months in 2020 is year 2. If I did not rent out the room in 2021 and 2022, but then rented a spare room during part of 2023, do the years 2021, 2022 and 2023 count as year 3, 4 and 5 of the 27.5 years of depreciation? Or, since it was not rented in 2021 and 2022 does no depreciation occur in non-rental years but if I resume renting in 2023, do I then count 2023 as year 3 of the 27.5 years depreciation? It would seem strange if someone only rented a spare room for 1 year, and then they go to sell the home 30 years later and have to recapture depreciation for 27.5 years. Also, if they did not resume renting until after 28 years and had only rented 1 year, it seems strange they could no longer depreciate even though people living in 50 year old houses might be able to depreciate a rental room in their house. Please help me understand. Thank you.
