Question
DEPRECIATION PERCENTAGE WILL CHANGE IN THE NEXT YEAR
This year I have a client that started to rent out their town house starting for July-December.
My issue is that they used it personally in those 6 months for 42% of the 6 months. So what I did was take the utilities for those months x 58%.. etc..
My question is since i am depreciating the building for 1/2 year and only 58% of that what happens or do i do next year when it becomes a different percentage? Do I just write the percentage on the depreciation form and change it each year? When i put the number of days on the top of the schedule E, it gives me a larger amount than if you use the calculator. Maybe a full year in the rental and that day count will work out. HELP.
