o clarify, I will not be retiring any assets,
Rental real estate property *is* an asset. Basically, anything used on a recurring basis for the production of income is an asset. Rental real estate is exactly that.
but I will be adding the additional percentage of rental use as a separate asset with the start date that portion of the house became available for rent. Yes?
Correct. One thing you'll need to do that first year is to allocate the property taxes and mortgage interest between SCH E for the period of time it was a rental, and SCH A for the period of time it was personal use. You'll also have to pro-rate the property insurance. The math will be a bit tricky. But I'm sure you can figure it out.
As for the utilities, that may require some math on your part too. But again, I'm sure you're aware of that stuff can will figure it.
It's also possible that pro-rating
