Hi Diane,
I have a residential rental property that I placed in service in 06/2020, then we started a gut rehab on it in 02/2021 and it was out-of-service completely from then until 12/2021. As you describe, can I just list two depreciation assets on my taxes: one placed in service 06/2020 and disposed of in 02/2021, and then under the same property, a second depreciation asset that represents the same building, just with a placed in service date of 12/2021?
Additionally, I realized that I did not calculate the cost basis correctly for my 2020 taxes (over-estimated the land basis, as per the assessed land value by the county). Can I change my cost basis to the now-higher amount or is that not the correct way to do this? If so, what do I list for accumulated depreciation? The amount of depreciation I claimed in 2020 ($4298)? Or the higher amount I should have been entitled to in 2020 ($7207)?
