- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Yes, all assets are depreciated using the current-year percentage.
As for this transition and whether you continue to use the existing assets or start new ones, that is a bit tricky. You need to determine if (a) it was converted to personal use. Then as a later event, it was placed in service again, or (b) it went from a rental to mixed-use.
The other way around, going from mixed-use to 100% rental is determined if the 100% rental is expected to be for one year or more. Based on that, it could be reasonable that (a) if the personal-only use was more than one year, it would be considered as converted to personal use or (b) if the personal-only use was less than one year, it went directly to mixed-use.
As for your question, if it went from rental to mixed-use, continue to depreciate the existing assets.
If it went from rental to personal use, then later placed in service as a mixed-use, restart depreciation using new asset sheets, using (1) the new placed in service date and (2) for the Basis, use the lower of (a) Adjusted Basis or (b) the Fair Market Value on date of conversion.