Depreciation on Residential Rental Property
I purchased a home in 2006 that I first used as a personal residence from 2006 to 2008; then rented it out from 2008 to 2010; then, again, used it as a personal residence from 2010 to 2012; and am now renting it out again.
Do I need to refigure the basis of the home for depreciation purposes for tax years 2012 and on. The fair market value of the home is now less than the basis I used for rental depreciation from 2008 to 2010. The home was purchased at the top of the market in 2006 and has lost 25% of its value.