ReRenting personal residence: depreciation question

[Hahn1040]

I should know this but I am drawing a blank:

t/p rented house 2014-2016 while overseas; then lived in it until 2019

now posted overseas again and starting renting july 2019

For depreciation: do I just start up where I left off or do I adjust the basis for depreciation taken and start over with 27.5 years with new basis. 

Thanks!

[Lee B]

40 minutes ago, Hahn1040 said:

 

For depreciation: do I just start up where I left off or do I adjust the basis for depreciation taken and start over with 27.5 years with new basis. 

Thanks!

I may be wrong, but I would start up where you left off, in order to keep track of depreciation for purpose of calculating exclusion of gain on future sale of this home.

[jklcpa]

Like cbslee, I would treat this as property that's been idle and put back into service, meaning to put it back into active status and use the same basis and accumulated depreciation. To do otherwise would risk losing track of the depreciation already taken that will be subject to recapture when the property is disposed of.

[Max W]

Just now, cbslee said:

I may be wrong, but I would start up where you left off, in order to keep track of depreciation for purpose of calculating exclusion of gain on future sale of this home.

I agree, but there are other things that have to be done.   Enter the accumulated dep. from before.  Also, since you are starting in July, be sure that only 50% of the calculated dep. is taken, as the s/w is going to take it from Jan 1, as it will be reading date of px as a prior year.

Here is where it could get tricky.  It depends on the software and each s/w handles it differently.  If you are only taking 50% of the yearly depreciation, the s/w may only be taking 50% of the actual expenses.  In this case you would have to double actual expenses.  

 

[Gail in Virginia]

I am just wondering if the market value of the property had dropped, if you would have to put it in to service at the lower FMV when the use changed again.......

Hopefully, that is not the case.

[Pacun]

The easiest is to compare the lower of cost or FMV in July. Then depreciate the item as new.... just add, depreciation taken.  That way you don't have to worry about half year because the software will take the correct depreciation.