I acquired a single-family investment property about 5 years ago for a net acquisition cost of $100,000. Over the time I’ve owned the property, I’ve taken $15,000 in depreciation, which brings my adjusted cost basis down to $85,000. If I owned the first property for 5 years, this means the remaining $85,000 adjusted cost basis would need to continue to be depreciated for another 22.5 years. (Remember that the total depreciation timeframe is 27.5 years for residential investment properties). How do we reflect this in TT?
