For the past 4 years I have rented my home while also living in it. The portion of it that was rented is 2/3. When I initially filled out the depreciation portion for the property itself I multiplied the house cost by 2/3 and the land cost by 2/3 in the depreciation section. I did not change those values for the next couple of years until end of 2020 because my property was 2/3 rental until then.
Right from the beginning (hope this makes it a bit easier) of 2021, I started to only rent out 1/3 of my house until August 2021 when it no longer became a rental and I moved in as primary residence.
I was able to update all other things like rental expenses, mortgage interest, etc to reflect the new rental proportion. But I am unsure of how to update the property depreciation or if I should? From what I've heard in general, the depreciation cost information should not be updated. For example, should I now update the house cost to be 1/3 times the original cost of house and land to be 1/3 times the original value of land when I originally bought the house? Or do I need to completely add a new rental property for the 2021 year, and if I do that should I update anything in 2021 for the old unit from 2020?
@Carl I saw you answer a lot of these questions from browsing the discussion board so I think the answer is the latter, but could really use your insight in this particular case where the amount of rental percentage is going less vs up. Thank you!
