How do I alocate investiment property that used to be in the schedule E. Its a rental property now paid off, and how to continue the depreciation of it?

[view2 · Accepted solution]

Paying off a loan on a rental property only effects the interest as a rental expense.

You do not have any to expense.Nothing else on the Schedule E is effected.

[milabiju]

Let's see if I get that. I'm not deducting the interest because I wont have it anymore, but what about the expenses that I have with the property, such as supplies, maintenance , energy, water and others common to the business?

[view2]

It is still a rental property [as long as you use the property for rental activity] for Schedule E and depreciated 27.5 years from date placed in service .You can have a rental property that has been paid off and fully depreciated and still have rental income and expenses on a active rental property that is reported on Schedule E.

You have operating expenses for the rental property as long as it is maintained in that activity.