DEPRECIATION PERCENTAGE WILL CHANGE IN THE NEXT YEAR

[shf1957]

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.

[dkh]

If it were me with this problem, I'd procrastinate in determining how to handle it for next year until next year.

And by me responding, it pushes your post back to the top of the list for others to see that might have a true answer for you.....😉

[TaxGuyBill]

If I remember correctly, the rental and personal days on the top of Schedule E do NOT affect the depreciation.

Assuming that is still the case, you need to manually enter the proper percentage each year for depreciation.

Does that help?