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jyg3tax
New Member

Rental property not depreciated. bought value 355k (bought 7/1/2003, land value 100k. I checked TT scheddule E, the property didn't depreciate at all.

bought value 355k (bought 7/1/2003), land value 100k. Turn to rental property 2018. I enter purachse value 355k. The house over 15years increase about 100k, Market value 450k or plus. The land value 100k. Then I  checked TT scheddule E, it only use purachased price to do depreciation. 

5 Replies
MichaelL1
Level 15

Rental property not depreciated. bought value 355k (bought 7/1/2003, land value 100k. I checked TT scheddule E, the property didn't depreciate at all.

It is only suppose to use the lessor of the purchase price or the fair market value when it became a rental.

Make sure that you have the property as 100% business from converted to a rental, as this might be why no deprciaiton is showing up.  So 0 days personal and all 100% business.

ghost
Level 8

Rental property not depreciated. bought value 355k (bought 7/1/2003, land value 100k. I checked TT scheddule E, the property didn't depreciate at all.

You only receive full year depreciation if rented on Jan 1, 2018 through Dec 31, 2018. Otherwise, it's prorated.
MichaelL1
Level 15

Rental property not depreciated. bought value 355k (bought 7/1/2003, land value 100k. I checked TT scheddule E, the property didn't depreciate at all.

Agree but after it placed in service list no personal days if there are none, so if August 1st it is placed in service, then 0 personal days and it will compute depreciation for 5 months.
jyg3tax
New Member

Rental property not depreciated. bought value 355k (bought 7/1/2003, land value 100k. I checked TT scheddule E, the property didn't depreciate at all.

TT use purachse price as base, not currently market value. The house increase 100k over 15 years. Can I use current market value as base?
MichaelL1
Level 15

Rental property not depreciated. bought value 355k (bought 7/1/2003, land value 100k. I checked TT scheddule E, the property didn't depreciate at all.

It will use the lessor of the purchase price or FMV(when converted to a rental).  
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