Yes, you can enter the correct prior depreciation when asked for that amount. If it's easier on the spreadsheet you can choose that method and keep the information with your tax file until the house is sold.
TT doesn't ask for prior depreciation so it seems I just need to adjust it myself? I tried 3 tests with slightly different answers and it doesn't ask. Not sure what I'm missing?
Do not subtract prior depreciation when entering the room rental portion of the building cost. The depreciation is being tracked automatically and is not used to adjust the cost basis for the room rental.
I don' t understand what you mean. I thought to arrive at the cost basis of the room, I would need to reduce the original cost of the home (minus land) and any improvements, and then divide that number by the % of the home used. If I don't subtract prior depreciation, I would have to use the entire original costs?
It's a good idea to let TurboTax do the calculations using rental days which is the correct business use percentage. This does keep all details in the tax return for future.
Yes, I want to let TT do this calculation, but it seems unable to do both calculations (% of home and % of days) so I'm thinking I need to pre-calculate/reduce the adjusted cost by % of home, and let TT do % of time. Does that sound right?
