Foreign Rental Depreciation

[Gordo1968]

This is the scenario....

A UK person, with no US connection buys residential real estate back in the UK in 2012 for the US $ equivalent of $150,000. The land is worth $50,000, the building $100,000. The UK person rents out the property from 2012.

On January 1st 2022, the UK person gets a green card and moves to the USA, is now considered a US person and has to file a US tax return for the first time. For IRS purposes, the property can be depreciated over 40 years, at $2,500 per year. Prior to 2022, since there were no US tax requirements, no depreciation has been taken on the property.

On the 2022 return should the date of the asset be shown as January 1st 2022, as this was the beginning of any US tax requirements, and show a prior depreciation of 0$ ?

Thankyou,

Gordon

[DaveF1006]

Since the UK person was a UK citizen prior to 2022, the 40-yr  depreciation schedule will start as of 01/01/2022.