topic Rental property depreciation in Investors & landlords

Rental property depreciation

Broncobear — Wed, 16 Sep 2020 20:40:34 GMT

Can I depreciate rental property owned by me and spouse and leased to a LLC that is multi member?

Re: Rental property depreciation

Critter-3 — Wed, 16 Sep 2020 21:05:35 GMT

When you rent a property you MUST take depreciation on the Sch E no matter who you rent to as long as it is at a fair market rate.

Re: Rental property depreciation

Carl — Thu, 17 Sep 2020 00:37:57 GMT

With very few exceptions, (of which none that I am aware of apply to your situation) you don't have a choice on this, and are required to depreciate the property. If you don't depreciate the property, then in the year you sell the property you are still required to reduce your cost basis by the depreciation you "should* have taken. So either way, you will pay taxes on that depreciation taken, or should have taken, in the tax year you sell the property.