I'd appreciate a sanity check.
I own a rental home outright and am preparing to sell it. I've depreciated the $151,500 improvement by the formula (divided by 27.5) for 16 years. In total, I've depreciated it about 88K. I never altered my depreciation amount (a steady $5509 per year), even as the improvement rose to a county appraisal value of 332,000.
When I sell my home, will taxing authorities assert the more aggressive depreciation reduction that I should have taken? Or will they honor my depreciation over the years? I know I've left money on the table over the years not depreciating more aggressively, but I'm hoping I haven't created a huge sale headache and can see benefit on the sale side.
Thanks for your clarification and help.