My question is regarding Form 4562 and Schedule E and how to properly enter a depreciation deduction.
If the property in question is a mixed use rental of a room in an owner occupied residence with both rental days and personal days, placed in service during a given year, rental expenses including depreciation, as I understand, must be divided between personal use days and rental days.... So in Part III Line 19h on Form 4562, you enter the date placed in service, the cost basis, and then you use the MACRS tables to find out the appropriate percentage for calculating the depreciation deduction... However, for mixed use (personal days and rental days), you'd have to divide the depreciation expense between the personal and rental days and then enter only the rental use percentage on Schedule E.
So my question is: Do you enter the lower (rental portion only) expense in both line 18 of Schedule E as well as lines 19h and 22 of Form 4562, or do you enter the higher (not yet divided up) deduction on Form 4562, and then only put the lower divided up expense on Schedule E?
Should the numbers on these two forms be different or the same in the mixed use circumstance?
Many thanks!!
