riordanrobert
Returning Member

Can I depreciate a new limited common element (elevator) added at the condo we rent out, or must I treat it as payment of a fee?

Our condo complex added an elevator that serves four units, including one we rent out to others.  The four unit owners were assessed and paid 1/4 the cost.  The association owns the elevator, but it is assigned to the four units as a limited common element.  Can I treat this as having added an asset to our unit and depreciate it, or must I treat what we paid as something like a regular HOA fee?  How is our basis affected?