Contact UsI purchase a residential rental property, put in service right away on the same year. When I filed tax by the end of the year using TurboTaxI see Turbo tax gave me some amount of depreciation (which was calculated from the purchase price /27.5 year.)
Should I keep claim for depreciation with the same amount every year as long as it's still rented?
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Tax Professional Answers
John Stancil
Not necessarily. If you purchased it and placed it in service in January, then the depreciation would be the same amount each year. If not, then the depreciation for the first year is based on the number of months that it was in service. I would add that, before calculating depreciation, you need to remove the cost of the land from the purchase price, as land does not depreciate. This link has a set of depreciation tables, including the 27.5 year one for residential rental property. Your program should calculate it each year, however.www.real-estate-owner.com/depreciation/macrs-recovery-method/macrs-depreciation-table/
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431 weeks ago