NYC coop as a rental property - questions
Hello all,
I currently reside in a NYC cooperative building (meaning I do not own the actual apartment but rather shares in the coop). For all intents and purposes, as a primary residence it comes with all the same tax write-offs as a regular home. However, I am considering moving out but keeping the property in my portfolio. A few questions about this scenario:
- How does deducting depreciation work for coops? How do I find out what % is "land" and what % is building? Can I take standard 80/20 ratio? Do I get an appraiser to appraise just my unit? Or is there a number for the entire building that every coop shareholder needs to use for their unit?
- Since I am not depreciating from the moment I bought, but only starting several years later, is my depreciation basis the original sale price or the fair market value as appraised by an appraiser as of the date I begin renting it?
- My coop charges a fee for renting out and not using as a primary residence. This is clearly a cost of doing business from a practical perspective, but is it also considered a tax-deductible cost in the eyes of the IRS?
- Even if I convert from a residence to a rental, I can still take advantage of the capital gains tax exemption on sale if I have lived in the property for 2 of the last 5 years prior to selling, correct?
Thank you.