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Investors & landlords
@TaxGuyBill Actually, so long as you own the property, if you do all t hat converting it back and forth between rental and personal use, each time you convert back to rental, you pick up depreciation where you left off. There's no vagueness about that really. That's one of the reasons the program will ask you for "prior depreciation already taken" any time you convert from personal use to rental.
For example, it will ask for prior depreciation the first time you convert to rental, because you have to include any depreciation you may have taken on the property if you claimed a home office on SCH C in prior years. You and I had some banter back and forth on that particular scenario about 3 years ago I think, when I was concerned the first year of rental depreciation was to high. I thought the program was "making up" for depreciation not taken on SCH E in a prior year (as opposed to the HO depreciation that was taken on SCH C). But you showed me how the program's figures were spot on, through the worksheets.
For example, it will ask for prior depreciation the first time you convert to rental, because you have to include any depreciation you may have taken on the property if you claimed a home office on SCH C in prior years. You and I had some banter back and forth on that particular scenario about 3 years ago I think, when I was concerned the first year of rental depreciation was to high. I thought the program was "making up" for depreciation not taken on SCH E in a prior year (as opposed to the HO depreciation that was taken on SCH C). But you showed me how the program's figures were spot on, through the worksheets.
‎June 5, 2019
11:07 PM
2,357 Views