Do the below changes sound right to you? When I input the cost (net of land) figure from 2016 , it zeros out depreciation for this year completely. Cost basis for the property itself I followed your guidance and took cost basis back in 2015 minus the accumulated total depreciation taken up until 2019 (the last year it was used as a rental throughout the year).
Please let me know.
I think I need to clarify some things just to ensure we're on the same page. I don't think we are.
Nowhere in the program are you asked to enter "Cost (Net of Land)". You're presented two boxes in the program. They are:
COST
COST OF LAND
For COST, look at the 2016 form 4562 that prints in landscape format titled "Amortization and Depreciation Report". For the property itself add together the amounts for the property under the "Cost (Net of Land)" column and the "Land" column. That total is what you enter in the program in the COST box.
The amount on the 4562 under the "Land" column is what you enter in the program in the COST OF LAND box.
The amount in the COST OF LAND box must be lower than the amount in the COST box.
Once those figures are entered, the program (not you) will subtract the amount in the COST OF LAND box, from the amount in the COST box, to determine the value of the structure to be depreciated.
Let's see what that result is when you get to the asset summary page.
