Hi. Diane:
Thanks.
TurboTax used fair market value - purchase price for the depreciation starting in 2016, the total of prior year depreciation was $X.
With the sale of the rental in 2022, for the cost of the condo, if I were to add the purchase expense and renovation expense (note renovation was completed before the start of rental) to the purchase cost now, TurboTax will calculate to give a different total prior year depreciation = $X + purchase expense + renovation expense. Should I correct the TurboTax calculation and change the calculated total prior year depreciation to $X?
I wonder if it may be better to just leave the cost base as the purchase price and keep the actual depreciation at $X to stay consistent with prior years' tax return reporting, the difference in Federal and State Tax is only about $100.
Your thought?
