In November 2017, I purchased a foreign condo through a program of preselling a condo being built in Philippines. During this time, all that was given to me was a Contract to Sell from the Condo developer. I made monthly payments until about August 2021 when I finished paying off the condo off completely in August 2021. Several months after paying it off completely, the condo was finished, In January 2022, the developer had turn-over the physical unit to me. That same month, I purchased nearly $8000 of furniture/appliances so I could rent this condo. On March 2022, I advertised the condominium and received subsequent rental after getting it rented in July 2022 – through January 2023. During the intervening time, the developer processed with condominium title and title was completed on January 2023.
I understand that I have to convert the value of the condo into USD dollar for the purpose of depreciation. The Philippine peso fluctuated over a period of five years.
Do I convert the value of the condo based on currency (from Philippine Peso to USD)from Nov 2017 (when I entered a contract to sell with Developer), July/August 2021 (when I paid it in full), January 2022 (when I actually Physical received the condo) or on January 2023 when the title was issued under my name?
Also can I depreciate the full cost of the condo + transfer fees + registration fees? I do not own the land underneath the condo (its my understanding you cannot depreciate the land)? The bulk of the payment in July/August 2021.
What about the $8000 in appliance I bought to rent this out as fully furnished rental? Can I depreciate this for 30 years as well (provided I have receipts)?
Also, its my understanding I can deduct from foreign rental income condo fees, cleaning fees, fees paid to agent for getting a renter? Is this correct?
