In 2019, my father gifted me our family house. I started renting half of the house in 2020 and I live in the other half. Turbo tax is automatically taking half of everything I enter (mortgage, taxes, utilities) when calculating expenses and it all makes sense to me. However, I am having trouble understanding how to depreciate for a new rental.
It asks for the Donor's Basis and I entered the full price my father bought the home in 2005. At the end, it gives me my depreciation deduction but it seems too high to me. Isn't Turbo Tax supposed to automatically take half of the depreciation deduction since I only rent half the house? It seems it is calculating it based on the full price.
I've tried talking to 3 specialists already but none can give me a clear answer. I'd appreciate the help 🙂
