Depreciation and Property Exp. on Rental Property ?

[P--GUPTA]

Due to Corona the property is Currently not on Rental Basis in 2022 and No Rental Income coming for 2022 ?

Whether can Claim Depreciation and other Property Expenses for Rental Property in India ?

[DianeW777 · Accepted solution]

It depends.  If your residential rental property is not and was not available for use all of 2022, then you are limited.

• Vacant rental property. If you hold property for rental purposes, you may be able to deduct your ordinary and necessary expenses (including depreciation) for managing, conserving, or maintaining the property while the property is vacant. However, you can’t deduct any loss of rental income for the period the property is vacant.
  • IRS Publication 527, page 4
• If your property was available and ready for use the entire year, with advertising creating public awareness and you were just unable to rent it, then all expenses would be allowed.  Be prepared with your proof of efforts.
• If there was any personal use of the property, then there are further limits explained in Chapter 5.  

[P--GUPTA]

Thanks to the group for providing the right answer to my Query.

Hope it is accepted by the IRs when  returns are filed .

Thanks once again !