Does anybody know how Proconnect calculates Depreciation Basis?
I have a Home Office calculation: Cost: $275,000

Business Use: 20%

Salvage/Basis Reduction (assume land): 41,250 (15%)

Prior Dep: $794, s/l, 39 year life Rate .02658 

And then Depreciation Basis: $13,750 and Curr Depr $344.  

Where does the $13,750 come from? 

Why isn't the Dep Basis: $46,750? ($275,000 - 15% x 20%)  and Current Yr Dep: $1,199?