Rental property not depreciated. bought value 355k (bought 7/1/2003, land value 100k. I checked TT scheddule E, the property didn't depreciate at all.

jyg3tax · ‎June 1, 2019

bought value 355k (bought 7/1/2003), land value 100k. Turn to rental property 2018. I enter purachse value 355k. The house over 15years increase about 100k, Market value 450k or plus. The land value 100k. Then I checked TT scheddule E, it only use purachased price to do depreciation.

MichaelL1 · ‎June 1, 2019

It is only suppose to use the lessor of the purchase price or the fair market value when it became a rental.

Make sure that you have the property as 100% business from converted to a rental, as this might be why no deprciaiton is showing up. So 0 days personal and all 100% business.

ghost · ‎June 1, 2019

You only receive full year depreciation if rented on Jan 1, 2018 through Dec 31, 2018. Otherwise, it's prorated.

MichaelL1 · ‎June 1, 2019

Agree but after it placed in service list no personal days if there are none, so if August 1st it is placed in service, then 0 personal days and it will compute depreciation for 5 months.

jyg3tax · ‎June 1, 2019

TT use purachse price as base, not currently market value. The house increase 100k over 15 years. Can I use current market value as base?

MichaelL1 · ‎June 1, 2019

It will use the lessor of the purchase price or FMV(when converted to a rental).

Rental property not depreciated. bought value 355k (bought 7/1/2003, land value 100k. I checked TT scheddule E, the property didn't depreciate at all.

Investors & landlords

Investors & landlords

Investors & landlords

Investors & landlords

Investors & landlords