T/P was depreciating asset 50% for home office but no longer lives in asset now rents living area how to change asset to 100% business use?

[bert@rr-tax-serv]

T/P has rental income from the area that used to be T/P home and still uses office area as T/P office. Asset was being depreciated at 50% for home office. There is no separation of expenses for the property.

[dkh]

What asset needs changed to 100% ?

[bert@rr-tax-serv]

The asset is a house that was taken 50% as a home office while the T/P was living in the house. T/p moved and is now renting the part of the home the T/P was living in, but still uses 50% of house for Office.

[dkh]

Why couldn't you leave the home office asset as is?   It is still 50% of the same property. 

And you add the % of home cost that is now rental property to  Sched E assets 

[bert@rr-tax-serv]

The rental is paid to the business and there is no separation of expenses between the rental and the office, ie. utilities, insurance, repairs, maintenance, ect. My thought was to take the rental as business income and all the expenses as business expenses, and then the asset at 100% business use?

[dkh]

My thought was to take the rental as business income and all the expenses as business expenses,

You need to rethink that....