Tax Basis for Depreciation - Accountant?
This is the first year I changed my former home into a rental. I changed it May 1, and have done a little updating prior to tenants moving in. I've always done my own taxes, but I've never needed additional schedules just the simple 1040 forms. Should I consider outsourcing this or is this something I could handle myself? I did some reading and it seems like I can add the improvements to the tax basis, not deduct them. So would this be correct for this year:
Property Basis
$99,000
+ (window)
+ (roof)
+ (paint)
+ (water heater)
- (energy credit)
----------------
(New Basis)/27.5=(annual depreciation)
(Annual depreciation)*(.75)
That's my understanding, please let me know if this is correct. I'd also like advice on whether I should try to continue to file my own taxes or find an accountant. I am actually hoping to go to school for accounting in the spring because it's interesting to me, but that's no help now. Thanks!