If you used the property for personal purposes before changing it to rental use, its depreciable basis is the lesser of its adjusted basis or its fair market value when you change it to rental use.
Figuring the basis. The basis for depreciation is the lesser of:
* The fair market value of the property on the date you changed it to rental use, or
* Your adjusted basis on the date of the change—that is, your original cost or other basis of the property, plus the cost of permanent additions or improvements since you acquired it, minus deductions for any casualty or theft losses claimed on earlier years' income tax returns and other decreases to basis.[separate land value ,land is not depreciated]
Turbotax will separate when you enter the total calculated adjusted value{$230,000}then the land value.[$30,00}
Your purchase date is entered on this screen.[1989]
Continue
Screen "Tell us about This Rental Asset"
No To : Have you used this item 100% for this business since you acquired it?"In the drop down select first used for personal before business.
Ensure you use date placed in service ready to rent 1/01/2016 [100% is from this date]
Some expenditures that a homeowner consider improvements may actual be repairs ,if the appraisal was done by a real estate professional and not a tax assessor appraisal.
