1. Now that I started depreciating, do I have to continue?
Yes, you are required to depreciate business assets.
2. If I have the option not to depreciate, is it in my interest to do it despite the increased tax cost this year?
No one can force you to claim depreciation, however you will need to recapture deprecation when you dispose of the asset whether you claimed it or not.
3. To throw in a new wrench...I will be selling one of the two properties this year (only rented 2 years). With this info, does is sway question 2 above?
Same as above, the depreciation is recaptured when you sell.
Depreciation usually lowers the income and therefore your tax liability when used, except for the year you sell.
There may have been another factor with the increased tax or are you entering the deprecation incorrectly?
With the TurboTax program, the program usually calculates the depreciation for the tax year.
Were you entering "Previous Years Depreciation"?
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