Investors & landlords
Yes, include depreciation only for the rental period that was missed (2014-2018). The chart used to calculate the depreciation is placed here for you and can also be found in Publication 946. Do not use any depreciation during the personal use period.
- Use your original cost basis you had on the rental when it was in service from 2011-2018.
If there were any capital improvements made at any time, and added as a depreciable asset during the prior rental period include a calculation for those as well.
Once you have the total amount and completed Form 3115, this full amount will be listed as an expense on your rental activity as 'Other or Miscellaneous' expense on your current year rental.
For the 2023 period when the it was converted back to a rental, enter the assets exactly as they were previously and if there were any capital improvements during the personal use period add them as a separate asset in 2023.
