I have an older rental on a small piece of land. It's been a rental for over 15 years. Last year I had to have a new well installed, to the tune of almost $30. When entering the cost of the asset into TurboTax to be depreciated, the software tells me I qualify for a Special Depreciation Allowance of 80% of the cost! I was delighted but also hesitant to believe it. If I truly qualify for this larger deduction, I want to know that it is in fact allowable, even if I decide to start using the property as my primary residence in this coming year. Are there any rules related to the continued use of the property as a rental? Am I really able to realize this large deduction one year and then stop using the property as a rental the next year?
I appreciate your input.
