If the asset had been placed into service prior to 2018, taken out of service, and then placed back into service thereafter, that might be problematic.
I don't think so. But it does require some manual math outside of the program. The cost basis would have to be adjusted by subtracting the prior depreciation taken, and the new basis entered in the COST box. The land value would remain unchanged. Then the program will figure on the 30 year schedule with the new structure value, starting all over from year 1.
It can be a pain, because it's up to you to remember the prior depreciation taken before converting back to rental, since that has to be included in recapture when sold. If you sell years down the road and forget about that prior depreciation, then it's included in the capital gain and taxed at the capital gain tax rate.
If the capital gain is excluded under the "2 of 5" rule, then you're not paying any tax on it, and the IRS would have an issue with that if/when they caught it.
