Can I depreciate a fully covered garage space rented with a condo?

[Juancar]

Hello turbotax community,

I own a condo and a private parking space inside a covered garage overseas. Both the condo and the parking space were rented to the same tenant; it is listed in the lease and when I receive the rental payment, I receive one single payment for both properties. The condo and the garage space are not in the same building but a few blocks away from each other, though. The garage is a private place with 7 parking spaces and only accessible to 7 owners. The garage is part of a residential building right over it.

I am using Schedule E to report expenses and depreciation for the Condo (30 years). I assume I can also use Schedule E to report the expenses for the parking space (HOA), but can I also use depreciation? (I have a deed, listing the price of the land and the structure, its size and its number. Again, this is just my space and no one else).

If so, should I choose Commercial as the type of property and depreciate it over 40 years? Then, I would have two separate Schedule E’s (one for the condo (residential 30 years) and another one for the garage space (commercial 40 years). Or should I just have one Schedule E for both the condo and the garage space and depreciate both over 30 years? (include the garage space as an asset within the Schedule E for the Condo).

Just to emphasize again that the garage space is fully covered (not a parking lot), there are 7 parking spaces assigned to each owner and there is a residential building right over it.

Thank you in advance for your responses.

[MarilynG1]

Does your Property Tax bill separate out the condo and the parking space with separate value?  If so, when you set up your Rental Property, you could assign separate Cost Basis values to each as separate depreciable assets.

If not, you would need to determine the value of the parking space to set it up as a depreciable rental  asset.  You wouldn't use 'Commercial' since you're not in the business of renting parking spaces (which would be reported on Schedule C).

If you can determine a Cost Basis (what you paid for it or FMV, whichever is less),  keep documentation for how you arrived at the amount.  Since this would be considered an 'improvement' to rental property, choose residential real estate property, with a description and amount for Cost Basis.

Here's more info on Depreciation of Rental Assets.

@Juancar