Thanks for your response @DianeW777
The room does make a profit when doing the calculations since my expenses are low and I'm in a high rent area.
For depreciation, do not enter any land value.
For the building, I used to rent out the entire home, but not for the last 2 years, so I have prior depreciation. Should I minus the prior depreciation from the total cost when the room is "placed in service," or should I enter it under prior depreciation on form 4562? I'm assuming it's cleaner to just track the prior depreciation of the whole house on my own spreadsheet, and keep this new "room rental" as a separate entity?
For the building, I enter the original purchase price, minus land, plus improvements, (minus any prior depreciation taken?) and then divide by square footage percent of home (and divide by business use days percentage? )
TT has a place to enter business use percentage for assets that does the calculations for me. so I'm thinking I'll enter the calculated cost reduced by % of the home, and then let TT divide it by the business use % (rental days calculation) since that is an amount that will change every year.
Ugh, this is a complicated calculation! Thanks for any help and ability to track all this!
