Hi Robert:
Just a follow-up. If one adds the purchase expense and renovation expense back to the cost of the rental property, TurboTax would automatically recalculate the total depreciation taken over the years of rental. Note that when the property became rental property, TurboTax chose the purchase price as the depreciation base. Would you recommend that the depreciation base as auto-calculated by TurboTax be corrected to reflect the actual depreciation taken over the years?
Another question: How should one handle the seller credit and broker credit received at the time of the home purchase? Should these credits be deducted from the purchase price for cost base purpose?
