Converting from vacation rental to yearly leased rental

[raven tang]

Hi, 

I converted an Airbnb to long term last September. 

I had previously cost segregated and bonus depreciated the property

How do I update the depreciation schedule for this change in use? 

Does useful life of the property needs to be updated from 39 years to 27.5y? 

Thanks 

L

[MaryK4]

You will enter as a new Schedule E rental property.  You will use the basis as the amount that you have for depreciable basis at the end of the short term rental.  The new depreciation will be calculated using the 27.5 years.  

[raven tang]

Thank you. 

When you said "You will use the basis as the amount" do you mean the current remaining basis from the short term rental and not the basis from the beginning? 

Thanks

[DaveF1006]

When you enter this as an depreciable asset, you will use the basis from the beginning as the original cost. In the next screen, it will ask you when you began using this for business. This is when the depreciation begins.

[AmeliesUncle]

For this "change in use", you have two options:

1) Continue to depreciate over 39 years, using the original placed in service date and original Basis.

2) Restart depreciation, over 27.5 years, using the current Adjusted Basis (usually purchase price, plus improvement, minus depreciation).