Have a residential rental. That is now renting out the garage as commercial rent. The house is staying residential. I would assume that I have to complete a 3115 since it is a change. Would the garage start as a 0 in depreciation for the first year and leave the previous garage amount with the house.?
I had a commercial building downstairs that had a loft upstairs that was rented residential. I remember looking up the regs and that one and treated it all as commercial.
This one will be a pain because knowing the situation I have the feeling it will al go back to residential in a couple years.
thx
Michele
it's a change in use. No 3115 needed.
And as I recall for mixed use, you look at the % residential vs commercial % to determine the depreciable life. That must be what you looked up before.
Is it all one building, or is the garage a separate building?
Is the house and the garage two separate tenants?
Right before renting the garage as commercial, was it previously being used (and depreciated) as a Residential Rental?
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