Pacun Posted April 6, 2014 Report Share Posted April 6, 2014 Owner was renting out a house and her depreciation was based on 27.5 years because it was residential. Now in the "middle" of the year, she decided to open a daycare center. So last year I have depreciated 4 months on Schedule E and 4 months on schedule C. Am I correct to start depreciating the house using 39 years? The house was being remodeled (getting ready for the daycare for 4 months). So, I have to divide Real Estate mortgage and other expenses and enter 1 third on Sch E, and third on Sch C, How about the other third, Sch A????. Quote Link to comment Share on other sites More sharing options...
schirallicpa Posted April 6, 2014 Report Share Posted April 6, 2014 It would be nice if the software would put a way in the fixed assets to allocate pieces of an asset to different schedules. Run into this with vehicles sometimes too. Part used for business, part used for farm, some Sch E travel, etc. Yes - became commercial property. I agree with your logic. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted April 6, 2014 Report Share Posted April 6, 2014 Yes, but I'd put the Real Estate mortgage and other expenses and enter 1 third on Sch E, and 2 thirds on Sch C. Quote Link to comment Share on other sites More sharing options...
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