Taxpayer purchased a home and set up as a senior care center in 2007. Assets set up in 2007. Filed as schedule C. In 2009, taxpayer just couldn't get enough patients to keep the senior care center open so she changed from a senior care center to a residential rental as of June of 2009. I know I need to change the depreciation on the senior care center from 39 years to 27.5 years (correct??), but on the other depreciable items, do I just make an adjustment carrying them from schedule C to E, but same dates, methods, etc? Or do I have to set up new for schedule E. Example - appliances purchased 4/1/07 and depreciated on schedule C for 5 years with 2009 being in third year (I did set up S/L HY originally). Now that changed to rental, do I set up new with a 6/1/09 start date with 5 years depreciation or just carry on on schedule E, but in third year of depreciation. (Hope I am spelling out correctly!!) As always, any input appreciated!
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Depreciation
Bumping up andhoping to get some input. -
Since assets have already started their depreciable life, I would simply continue with existing depreciation schedule. But the house, yes, I see justification now forOriginally posted by peggysioux View Post
starting depreciation on it at 25.5 years, since two years have already been
taken.ChEAr$,
Harlan Lunsford, EA n LAComment
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Whole new schedule. For depreciation it is FMV or basis whichever is lower. So, subtract the depreciaton already taken, compare the new basis of the assets to FMV and start all over.JGComment
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