Based on IRS guidelines all allowed or allowable depreciation must be considered at the time of sale. You can generally figure depreciation on the business use portion. Therefore, if you made a mistake on your 2020 tax return relating to Depreciation on your rental property you will need to amend your 2020 return. You may also, need to amend 2021 to show the correct accumulated depreciation.
Yes, as you pointed there are limitations on the number of days you can use it for personal use. See the IRS guidance below:
Rental Property / Personal Use
If you rent a dwelling unit to others that you also use as a residence, limitations may apply to the rental expenses you can deduct. You're considered to use a dwelling unit as a residence if you use it for personal purposes during the tax year for a number of days that’s more than the greater of:
- 14 days, or
- 10% of the total days you rent it to others at a fair rental price.
It's possible that you'll use more than one dwelling unit as a residence during the year. For example, if you live in your main home for 11 months, your home is a dwelling unit used as a residence. If you live in your vacation home for the other 30 days of the year, your vacation home is also a dwelling unit used as a residence unless you rent your vacation home to others at a fair rental value for 300 or more days during the year in this example.
See the information below on how to Amend:
Amended Return
Also, see IRS guidance in the link below:
Renting Residential and Vacation Property
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