Okay, I've worked it through and it really doesn't appear much has changed. Here's the steps, assuming you have already entered the asset in the Assets/Depreciation section.
- In the Assets/Depreciation section elect to edit the asset.
- On Describe This Asset, select Rental Real Estate Property and continue.
- On Tell Us A Little More...." select Residential Rental Real Estate, and continue.
- On Tell Us About This Rental Asset, enter the description, cost, cost of land, and the date you "originally" purchased the property. Then continue.
- On Tell Us More About This Rental Asset, select that you purchased new, and no, I have not always used this item 100% of the time for business.
- Still on the same screen, enter the date in 2022 that you first started using this as a rental. Typically, this is the first day a renter "could" have moved in, and this date needs to be the same date you entered earlier, (If you were asked this same question earlier.)
- Now at the bottom where it asks for percentage of time, do *not* enter percentage of time. Instead, enter percentage of floor space. Then continue.
The figures "should" be right now, presuming you elected to have the program "do the math for you" at the start.
If the depreciation is not right, then you most likely elected to do the math manually yourself. In that case, for your COST and COST OF LAND, you would enter 25% of your cost basis for those items. (Assuming you have converted 25% of your floor space to rental.) Remember, COST OF LAND *is included* in the amount you enter in the COST box. The program (not you) will subtract the cost of land from the cost, to get the value of the structure for depreciation purposes.
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