Because it is treated as a disposition, when it is later "placed in service", you re-start things. You don't "pick up where you left off".
Your commend just switched on light bulbs for me. Thanks.
Taking a property out of service for personal use is not a disposition in the sense of "disposing" of anything. It'
s a conversion. When placing prior business property converted to personal use, back in service as business property, you "MUST" take into account the prior depreciation. No if's, and's or buts about that.
I just realized that what you have to do is reduce your cost basis on the property (specifically on the depreciated structure, and not the land) by the amount of prior depreciation already taken. Then your depreciation starts over based on the new, reduced cost basis.
