1. The easiest way to calculate the overall business use is to convert each year to months then calculate the percentage.
For instance, if you used the property 50% of the time for five years, that would be 6 months/year times 5 years, or 30 out of 60 months. Then if you rented it 100% for another five years, that would be 12x5 = 60 months. Add 30 plus 60 = 90 months business use out of a total of 10 years x 12 months (120), or 75%.
2. The acquisition cost is the total amount you paid for the property. For depreciation purposes, deduct the cost of the land from the total to calculate the cost for the residence. For a sale, you can either report each part separately (residence and land) or combine them as one sale.
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