I inherited a duplex in 2009, started renting it out 1 side in 2018, can I depreciate that half of the duplex even though I have no mortgage and Paid nothing for it?

[clampman2]

In the rental agreement I stipulate that the renter gets the use of one of the two garages and has 1/2 access to the laundry/ storage room.  I have essentially split the property in half.

[DDollar · Accepted solution]

Yes, you can depreciate it and you should depreciate it.  Even if you don't, if and when you sell the property it will be subject to "depreciation recapture" tax on the amount of depreciation that you were entitled to take. 

Although you didn't pay anything for your property, you do have a "cost basis", which you will use as the basis for your depreciation.  Your cost basis is the value of the property on the date of death of the person you inherited it from, plus any improvements (like a new roof, or renovations, etc.).  You will have to allocate the costs between the two halves of the duplex - based on square footage.  You will also have to allocate the cost between the land and the building.  The TurboTax step by step instructions will guide you through setting up your rental property.