I wish I had an answer since I am running into the same problem. Electing Out=YES gives 27.5yrs depreciation of remaining depreciation balance of relinquished property plus Excess basis, and seems to calculate the depreciation from the Mid-Month when the new one was put in service. Electing Out=NO calculates the same combined amount over the same 27.5yrs, but seems to calculate depreciation for the full year, resulting in a much higher depreciation for the current year, and seeming higher than what it should be. I can live with the YES results, but would like to be able to use both options in case I want to use the NO version. Anyone have more experience in this than I do? Thanks!
