We own our own home and have lived in it since 1985.
this year (2019), we rented out a single bedroom in our house for the entire year, say 20% of total square footage
what is the basis for depreciation?
is it the price we paid in 1985 + improvements?
is it zero, since we’ve lived in the house for more than 27.5 years?
Or,
is it the fair market value of the house when we converted the room to a “rental unit”?
Any insights are appreciated!
