Office in home to rental house

[Kea]

Existing client got divorced in early 2007. His wife was self-employed and claimed office-in-home. Client planned to sell house but could not find buyer. Decided to rent it instead.

The basis for the rental house should be the basis at the end of 2006? Even if ex used as OIH in 2007, depreciation would be minimal. I could find out date she moved out and calculate depreciation she would be allowed. (I haven't talked to her this year. Don't know if I will. No kids, and based on their situation, I don't think it will cause conflict of interest if she were to come in. I won't call her.)

Texas is a community property state. Does this affect the 1st few months. They were divorced by 12/31 so they will be each filing as single. I doubt they would be reporting any of the other's info.

Thanks.