Q. I have two questions in regards to rental properties. On June 30, 2010, I moved out of my primary residence that I owned and rented it out July 1, 2010.
First question is, how do I determine the value of the home to calculate the depreciation? I purchased the property in 2007 for $192,000 and lived in it until June 30, 2010. Of course the value has dropped, since it’s a Florida property. But what does the IRS use to determine the value?
Second question is, since I lived in the property for six months and rented it out for six months in 2010, can I only depreciate and write off expenses for six months? I’m assuming that is how it’s done, but cannot find anything to detail that for me.