Rental Property

Forum|Forum|4 years ago
February 12, 2022
4 replies
9 views

Before 2021, I had split ownership of a rental property. I refinanced at the beginning of 2021 and the other person was removed from ownership. I now own 100% of the property. For depreciation purposes, how do I treat the cost basis of the property now? Do I just double the basis?

PattiF

Level 15

This is an edited answer.

The 50% of the property that was acquired in 2021 will need to be depreciated under your ownership. 2021 will be the first year of depreciation. Residential rental property is depreciated for 27.5% years. The original portion of the property will continue to be depreciated as it had been before you acquired the other 50%.

[Edited 02/12/22 | 11:42 AM PST]

@edwardb302

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