I am currently renting out a portion of a condo unit (20%) and living in the remaining portion. The date of service began on 1 Jan 2023 and the rental portion was available for rent the entire year. I plan to utilize a pro-rated proportion (20%) of the full depreciation amount for the initial tax year claim, but expect to make the entire property 100% a rental unit during tax year 2024 after moving out of it. How does this change affect the past or current depreciation schedule/amounts, if at all? What is the correct method to determine the percentage during a year split between 20% and 100% usage (e.g. a weighted average over time?), and is it acceptable to simply claim the adjusted proportion on subsequent returns or does this require a request to change accounting method in any way, or amend prior returns to adjust the depreciation? Since this would result in less than the entire property being depreciated at the end of the 30 year (ADS) period, I have some doubts this is correct.
