In a nutshell, this is more complicated than any of us may be considering.
The one issue I see with this, is that portion of the rented commercial property would be depreciated over 27.5 years. Yet, the entire property already has depreciation figured on 39 years on SCH C.
Now I've looked and can't find what I'm looking for. But years ago I saw an IRS pub somewhere that would most likely apply to this situation. That pub stated something along the lines of, even though it's reported on SCH E, depreciation would still be 39 years since it's commercial property that is already being depreciated over 39 years on SCH C.
So to "set this up" on SCH E, one would have to account for depreciation already taken on that property portion, on the SCH C. Additionally, the SCH C would have to be adjusted too. Overall, I see this as beyond the capability of the TurboTax program to handle correctly without an over ride, which would invalidate the 100% Accuracy Guarantee and require the return to be mailed instead of e-filed.
