I have a house that I purchased 27 years ago and I am converting it from a personal residence to a rental property. When doing the cost basis and trying to get some depreciation benefit it appears that TurboTax is using the original purchase date to calculate depreciation thereby providing very little depreciation value because the house has almost reached the 27.5 years since I've owned it. Does this really mean that I will no longer be able to get any depreciation deductions after next year?
It was refinanced and full ownership was taken over due to a divorce, but from what I've read that does not necessarily restart the depreciation clock because it was not a purchased, but it's considered a transfer or buyout.
Can you please provide some clarity?
Thanks in advance.
