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.
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.)
Thanks but I am not seeing those screenshots. I will take another look when I get home
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.
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.
Property typically doesn't depreciate because it doesn't lose value over time. (Housing bubble excepted)
<a rel="nofollow" target="_blank" href="https://www.investopedia.com/articles/investing/060815/how-rental-property-depreciation-works.asp">https://www.investopedia.com/articles/investing/060815/how-rental-property-depreciation-works.asp</a>
This article states it does and my friend told me it does.