This is very helpful, thank you! For purposes of doing the info reporting for depreciation, how do you report historical information that predates (by decades) a portion being rented out? For example, house purchased in 2000 has 2000 square feet, with a 400 sf garage, so garage is 20% of the total square footage. In 2010, expansion increases the house size to 2500 sf (still with a 400 sf garage), so garage is then around 14% of total square footage. In 2022, garage is converted to rental unit. When doing the initial information for depreciation, which includes the cost of the property, do you report the entire purchase price for the house & land or just the percentage that covers the garage? If just the garage, do you use the percentage at the time the house was purchased or the one as it exists at the 2022 conversion?
Thank you very much!
