Hi TaxGuyBill--I'm returning to work on this and splitting up the duplex into two property entries in TurboTax and see that in prior years I entered a couple of renovations incorrectly. For example, I entered the driveway resurfacing as 100% business use on my 2013 taxes. I think that I should have entered that as 50% business use since we were living in the other 1/2 of the duplex. I was thinking of it wrong--more like common area that pertained to the duplex rental as a whole.
So... now I'm not sure what to do since the depreciation was based on the full cost basis of the driveway since 2013. I'm thinking that I can:
(1) leave it as-is and keep it as 100% under unit 1 and don't enter anything for it for unit 2 (which was our personal space until Jan 2018), even though that is probably wrong, or
(2) change it to 50% for unit 1 (and halve the cost basis and prior depreciation?) and add it as 50% (FMV) for unit 2 with no prior depreciation
Do either of those options make sense? Would option 2 totally mess up calculations moving forward? Or is there a better idea?
