How would I figure the depreciation on a house that was purchased for 305000 and has many capital improvements

[Andrew_W]

Hi @blanterman13,

Depreciation is generally related to property being used in business, or a rental.  

Assuming this is a home being rented, a few items need to be determined to calculate proper depreciation for the property:

• The original purchase price (cost basis).
• Allocation of the value between the different components of the property (ex. land and improvements).
• The appropriate depreciation schedule and method (based on the type(s) of property being depreciated).

With those items identified, the proper depreciation can be schedule for property.

This article breaks down depreciation for rental properties in more detail: Rental Real Estate and Taxes