To calculate the total depreciation on your rental property, you need to consider only the periods when it was used as a rental: 2016-2020 and Fall 2024 onward. Assuming you meant it became a rental again in late 2024, here's how you can calculate it: Per the IRS residential rentals are generally depreciated over a recovery period of 27.5 years using the straight line method of depreciation and a mid-month convention as residential rental property.
Depreciation Calculation
First Rental Period (2016-2020):
- Depreciation is calculated using the straight-line method over 27.5 years for residential rental property.
- If the building's basis is $200,000, the annual depreciation would be $200,000 / 27.5 = $7,273.
Second Rental Period (Fall 2024 onward):
- Depreciation resumes when the property is placed back in service as a rental.
- For simplicity, let's assume it was rented for 3 months in 2024: $7,273 / 12 * 3 = $1,818.
Example Calculation
- First Rental Period (2016-2020): 4 years of rental.
- Annual Depreciation: $7,273.
- Total Depreciation: 4 * $7,273 = $29,092.
- Second Rental Period (Fall 2024): 3 months of rental.
- Depreciation for 2024: $1,818.
- Total Depreciation: $29,092 + $1,818 = $30,910.
For more detailed information and examples, you can refer to the IRS Publication 527 on residential rental property
