Okay, I see we are thinking the same, but wording it differently.
Entering January 2nd, 2017 is what I call "restarting" depreciation, as you are restarting the 27.5 year period using the Adjusted Basis (you don't enter "prior depreciation", but you enter the Adjusted Basis, which has been reduced for the previously used depreciation,and make notes in the file about the prior depreciation for whenever it is sold).
The other viewpoint would be to 'start where you left off', by depreciating it over 26.5 more years (you already 'used' one year).
