On Form 4562, when I enter the depreciation deduction for residential rental property put into service in the middle of the year, do I put the amount of the annual deduction or the amount of the deduction for the period of time the property was in service. EG. If the annual deduction is 1,000 and the property is placed in service July 1, do I put in $1,000 or $500. My concern is since Form 4562 is filed only the first year the property is in service, the next year when I deduct $1,000 for the full year the IRS will not allow it because I declared just $500 the prior year. Or should I file another Form 4562 the next year … or every year? Please help. Thank you.
