No depreciation adjustment is needed if you now rent a prior short-term rental all year.
I'm concerned the above statement may be confusing to some.
If as an STR you qualified to report your STR income/expenses on SCH C, as a long term rental that typically gets reported on SCH E. On SCH C the property was depreciated over 39 years. Whereas on SCH E it's depreciated over 27.5 years.
You close the STR business on the SCH C. But keep a copy of that final SCH C as well as the IRS Form 4632 (both of the 4632's), as you will need it in later years when/if you die or you sell the property.
On the SCH E when working it through the assets/depreciation section, your total cost basis will be the original cost basis used on the SCH C, minus the total amount of depreciation already taken on the SCH C. Your land value on the SCH E will be exactly the same as it was on the SCH C, since land is not depreciated.
