Thanks! Prior depreciation on the home being used by TT is $35,825 (It is an airbnb rental and it was not always rented out for the whole year). How does the calculation work taking into account the prior depreciation? If I reduce the basis by the $35,825, my remaining (adjusted?) basis is $134,275. I have tried dividing that by several different amounts, nothing gives me the amount Turbo Tax is using : $6,537:
20.5: (27.5-6) (6: prior years in service): $6,550
21.5: $6,245.35
20: (27.5-7.5) (first year is .5?): $6,713
Note: Turbotax has the year of depreciation as 8
My tax accountant just used the Total basis/27.5, was she incorrect? Is there an IRS document/section that defines how the prior depreciation is used and how it impacts current depreciation?
