Just checking to make sure I have this right. Client rented out a house, 27.5 year depreciaiton for 6 years. Then he stopped renting it for 5 years and in 2010 resumed renting it. I believe I reduce the basis by the six years of depreciationa and then depreciate that amount over 21.5 years, correct?
Announcement
Collapse
No announcement yet.
Depreciation question
Collapse
X
-
This may (or may not) be helpful: http://www.taxalmanac.org/index.php/...ental_property. The consensus on that discussion looks to be that you reduce the basis by prior depreciation and then depreciate over 27.5 years. Use the lesser of the adjusted basis or FMV for depreciation value.Last edited by MilTaxEA; 06-17-2011, 11:20 AM.Michael
Disclaimer
Collapse
This message board allows participants to freely exchange ideas and opinions on areas concerning taxes. The comments posted are the opinions of participants and not that of Tax Materials, Inc. We make no claim as to the accuracy of the information and will not be held liable for any damages caused by using such information. Tax Materials, Inc. reserves the right to delete or modify inappropriate postings.
Comment