I see. So I just lower my basis by the prior depreciation, and restart the 27.5 year depreciation clock? That part still seems a little odd to me, but I'm not sure how else to account for it.
And then if/when I finally sell the property, the gain will be higher from the lower basis. I assume I also need to correctly report the prior chunk of depreciation at that time for accurate depreciation recapture, right?
