turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Can I depreciate a town house which I own and my daughter rents?

 
Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions
AlanT
Expert Alumni

Can I depreciate a town house which I own and my daughter rents?

Yes, you can depreciate your rental property as long as the following are true:

  • You own the property, 
  • You use the property to produce income, 
  • You must be able to determine a "useful life" for the property. This means that the property must be one that would eventually wear out or get "used up." A house has a definable useful life; a piece of land does not.
  • The property's useful life is longer than one year. If the property would get used up or worn out in a year, you would typically deduct the entire cost as a regular rental expense.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

2 Replies
AlanT
Expert Alumni

Can I depreciate a town house which I own and my daughter rents?

Yes, you can depreciate your rental property as long as the following are true:

  • You own the property, 
  • You use the property to produce income, 
  • You must be able to determine a "useful life" for the property. This means that the property must be one that would eventually wear out or get "used up." A house has a definable useful life; a piece of land does not.
  • The property's useful life is longer than one year. If the property would get used up or worn out in a year, you would typically deduct the entire cost as a regular rental expense.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Can I depreciate a town house which I own and my daughter rents?

Perhaps.  Any day that your daughter rents the home and pays fair market rent for the rental can be depreciated.  If she pays less than fair market rent, the property is considered personal use property, and you may not deduct any expenses, including depreciation on the property.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies