What is the name of your state (only U.S. law)? NJ
I own a duplex. It was purchased and put into service in August of 1993. I lived in one unit and rented the other (much larger) unit. In all previous tax years I divided the basis as 70%/30% business/personal use and used 70% of the value (minus land) to calculate depreciation. At the beginning of the 2009 tax year I moved to a different state and am now renting out the unit I used to live in. I believe I am now able to take depreciation on the additional 30%. Is this correct? If so, how do I calculate the depreciation on this additional 30% and list it on form 4562? Do I treat it as a separate asset even though it is all part of the same duplex? Would I create a new depreciable asset and list it on a separate line using 30% of the original value (+/- adjustments in that asset) and just begin taking depreciation as of the date in 2009 that this unit was placed in service? This seems to me the correct way to handle it, but I just wanted to check with the knowledgeable members of this forum for any guidance. Thank so much.
I own a duplex. It was purchased and put into service in August of 1993. I lived in one unit and rented the other (much larger) unit. In all previous tax years I divided the basis as 70%/30% business/personal use and used 70% of the value (minus land) to calculate depreciation. At the beginning of the 2009 tax year I moved to a different state and am now renting out the unit I used to live in. I believe I am now able to take depreciation on the additional 30%. Is this correct? If so, how do I calculate the depreciation on this additional 30% and list it on form 4562? Do I treat it as a separate asset even though it is all part of the same duplex? Would I create a new depreciable asset and list it on a separate line using 30% of the original value (+/- adjustments in that asset) and just begin taking depreciation as of the date in 2009 that this unit was placed in service? This seems to me the correct way to handle it, but I just wanted to check with the knowledgeable members of this forum for any guidance. Thank so much.