Why isn't my rental property purchase in state of WA last year being depreciated? Turbo Tax shows as 0 depreciation for the next 27 1/2 years?

[buddychan]

I purchased the condo for $155K on Oct. 1, 2017 and it was already rented out by the previous owner.  I did not leave there and I did not spend any money remodeling.

[Coleen3 · Accepted solution]

You would need to go through the entire Rental Section to set up the details for your property. Under the Sale/Depreciation section you will enter information regarding the depreciation. (See the attached screenshots below. Click to enlarge.)

[buddychan]

Thanks but I am not seeing those screenshots.  I will take another look when I get home

[buddychan]

Hi TaxColeen - I had alot more questions to answer, but when I put the land value as 0, it depreciated the entire purchase amount to be depreciated over 27 1/2 years.  Should the condo land value be 0, or where do I go to find it?  Thanks.

[Coleen3]

Yes. The land value is zero if there is no land attached. For a condo, this is probably correct. The condo itself will be depreciated over 27.5 years.

[mgreenup79]

Property typically doesn't depreciate because it doesn't lose value over time. (Housing bubble excepted)

[buddychan]

<a rel="nofollow" target="_blank" href="https://www.investopedia.com/articles/investing/060815/how-rental-property-depreciation-works.asp">h...>

This article states it does and my friend told me it does.

[Coleen3]

Your article is correct.