Converted back to rental on 1 April 2020
The "only" correct way to do this on the 2020 tax return is as follows:
You *MUST* reduce your cost basis of the property by the amount of depreciation already taken on the property. Take note that only the cost of the structure will be reduced by the amount of depreciation already taken on that structure. Since land is never depreciated, the cost of the land remains the same.
Then you will enter this into the 2020 TurboTax program, and depreciation over the next 27.5 years starts all over from year 1, using the reduced cost basis.
