I have a rental property for two years and I (or TurboTax really) have used SL (27.5 years) for depreciation. The cost base is $500,000 ($1mil purchase cost minus $500,000 land cost as entered on TurboTax for residential property). This year I am doing a cost segregation study and it splits depreciation of the still roughly $500,000 into 5/15/27.5 years buckets. Now the the cost base for the 27.5 years is only $300,000 ($200,000 goes to 5/15 years). Question is how do I update depreciation asset (Sch E) on this year's filing to reflect that the cost base using 27.5 years SL deprecation method is only $300,000 not the $500,000 based on purchase cost minus land cost? TurboTax seems to only ask purchase and land cost for residential rental real estate. Thanks!
