My situation might be a bit tricky. We live in a home that had the upstairs converted to 2 apartments a long time ago (before we bought the property). We have been here for over 20 years so the 27 years of depreciation will end before too long... I have one apartment that we essentially used for personal matters for the 2022 year. I understand that I can reinstate it back into the rental property but I will need to establish a new basis for that unit. We still have a mortgage, taxes, etc. (due to a refinance) so even though the basis might be less, it would be nice to continue to be able to create a new basis. My understanding is once I reinstate that apartment I can once again depreciate it, etc. for another 27 or so years. or until the depreciation runs out? Even then can I deduct taxes, expenses for repairs, etc.? I would "assume" I could continue to use the basis previously set up for the other apartment that is continually rented.
Thank you in advance for your response.
