Home office converted to rental

[MarkM]

Clients lived in prinicpal residence and claimed a home office deduction for about 10 years.They moved out of the house but still own it and converted it to a FT rental.

I know the adjusted cost basis carries over to the rental but does the holding period? Or do we start a new 27.5 year holding period for the rental?

[MarkM]

Never mind - I answered my own question.

[Pacun]

Yes you start with 27.5 and depreciate the whole enchiladala.

[RitaB]

40 minutes ago, Pacun said:

Yes you start with 27.5 and depreciate the whole enchiladala.

Well, if by enchiladala you mean adjusted basis after accounting for what has already been depreciated.

[Pacun]

Correct, I meant the part they were living in and the office minus land and depreciation taken or takable. (Allowed or allowable).

 

[Lion EA]

Oh, like "taken or takeable" much better!  I think I'll use that phrase with my clients now.  I know it's the phrase that will be in my head.  Thank you, Pacun.