In 2015 my siblings and I inherited a house in CA. It’s property tax was 40% land/ 60% additions at time of death. In 2016, I bought out my siblings and began using it as a rental, the ownership changed to my name and the house was reappraised. There was no property tax reassessment done yet (county government speed) so I used the 60% of the new appraised value to determine the depreciation basis for two years of my tax filing. The property tax was eventually reassessed, but now is about 60% land/ 40% additions. The 60% I used vs the county update of 40% is about $4200 a year difference in depreciation. So… do I need to adjust my depreciation since I was using percentages from 25 years ago before the county finally got around to reassessing? Is either keeping the depreciation I had or changing it to the new county assessed numbers a problem with IRS or recapture later? Thanks!
