I found my depreciation basis was too high last year (1st year to depreciate). Should I continue to use the same basis to calculate this year or can I adjust the basis to the lower one?
2nd question: I remodel my ADU as rental property in 2019. Should I add up the renovation cost into my basis or separate as a new assets to depreciate? If I added it up, can I adjust the amount from previous year to correct it? For example, I used $100,000 as improvement basis to depreciate by using S/L 27.5 years, which should be $80K. This year, I spent $70K to renovate my ADU. Can I use $80K + $70K = $150K as my basis in 2019 to depreciate?
