Author Topic: Depreciation question  (Read 915 times)

Lan Mandragoran

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Depreciation question
« on: May 04, 2017, 02:47:29 PM »
This might be a stupid question, sorry if so, all of my googlefu was coming up short with vague answers.

When does depreciation end?  I know there are 27.5 years of depreciation you can claim, but does that start from when you started claiming the house as a rental or does it start when the house is finished being built? 

For some reason I was thinking it was the latter, but I cant find much that supports that.

CareCPA

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Re: Depreciation question
« Reply #1 on: May 04, 2017, 02:50:39 PM »
27.5 years since placed in service. In this case, placed in service means converted to rental if the house was first used as your residence.

Lan Mandragoran

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Re: Depreciation question
« Reply #2 on: May 05, 2017, 08:05:50 AM »
oh awesome :). I was under the impression the house couldn't be older than 27.5 years :P.

With This Herring

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Re: Depreciation question
« Reply #3 on: May 05, 2017, 10:13:28 AM »
Nope, not at all!  So, if you own a house that you use as a rental for decades, you run out of depreciation at 27.5 years.  But then, if you sell it to someone else (who also wants to rent it out), they get 27.5 years to depreciate their purchase price.