One of the rentals was purchased back in Feb 2014 and only 70% of space was rented out from the year of purchase to the end of 2018. During those years, only 70% of deduction of real estate, insurance, depreciation, amortization, and etc was taken.
Starting on 1/1/2019, the rental was converted to full 100% rental. I added three new assets including 30% of land, 30% building, and 30% of loan cost and placed them in service on 1/1/2019 without thinking too much. The original loan is a 30-year loan.
Am I wrong on putting whole $5,222( 30% loan cost) in service on 1/1/2019 and depreciating it over 30 years because technically 30% of property is for personal purpose from 2014-2018? As of 12/31/2020, I already deduct 348 of amortization in 2019 & 2020 related to 30% loan cost. Folks, do you think I should have put only 5,222/360*(360-59)=4,366 in service on 1/1/2019 and depreciate over 301 months instead of 30 years? There are 59 months from Feb 2014-Dec 2018. How do I fix?
The rental was refinanced in 2021 with a different lender. I will deduct unamortized loan cost on 2021 return.
I don't want to take too much unamortized loan cost deduction on 2021 if I did make mistake on loan cost placed in service in 2019. Your help is greatly appreciated!!
