Property was inherited and rented 2015. No longer rented as of Nov. 2017. Sold in Jan. 2018. Never used as personal residence. Sold for profit.
Depreciation is calculated on your Adjusted Basis, in your case the Fair Market Value on the date of death. The percentage is 3.636% per month. If your house was valued at $100,000, for 2016 and 2017, it will be 3,636. 2018 will be 3,636 divided by the number of months it was in service.
Year one is trickier, because the month you place the property in service determines the percentage. See Pub 946 link below. The table for residential rental real estate is on Page 70, Table A-6.
Still have questions?Make a post