I'm not sure that I understand. It's the same commercial property, with a step up in basis during the year. If the depreciation based on the new basis is added to the depreciation based on the original basis after the date of the step up, it seems that the depreciation of the property for the year is greater than it should be. Here is my understanding, which may be flawed, based on a hypothetical example: If the original annual depreciation was $100, and at mid-year the basis was stepped up such that the annual depreciation would be computed to be $200, then the effective depreciation of this single property would be $150 for the year. Am I correct?
