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pjmidslife
Returning Member

I own a duplex split into personal and rental, and am now converting the personal side to rental for the entire property; do I now change the basis for depreciation?

I set up the rental side as a separate property. I am not selling the house. 

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Accepted Solutions
Leonard
Intuit Alumni

I own a duplex split into personal and rental, and am now converting the personal side to rental for the entire property; do I now change the basis for depreciation?

You will treat the personal area of the duplex you are converting to a rental as a new rental property.

You will have to determine the cost basis for the new rental property and use that amount for depreciating the new rental unit.

You will not adjust the cost basis for the existing rental unit

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1 Reply
Leonard
Intuit Alumni

I own a duplex split into personal and rental, and am now converting the personal side to rental for the entire property; do I now change the basis for depreciation?

You will treat the personal area of the duplex you are converting to a rental as a new rental property.

You will have to determine the cost basis for the new rental property and use that amount for depreciating the new rental unit.

You will not adjust the cost basis for the existing rental unit

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