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Tax, SDIRAs & Cost Segregation

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James Free
  • Rental Property Investor
  • Fort Collins, CO
321
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125
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Basis for Depreciation

James Free
  • Rental Property Investor
  • Fort Collins, CO
Posted Feb 11 2017, 23:09

I occupied a house for seven years, then moved and began renting it. I cash-out refinanced months before the move, as it had appreciated 60% since I bought it. Now that it's a rental, I can take depreciation, but using what amount? The original (2009 short-sale) purchase price, or the (much higher) appraised value as of the time of the cash-out-refi?

And what value is the basis for depreciation? Should be price minus value of land, right? Here's a sample county website entry (random house, not mine) - what number would be used given this? http://imgur.com/gallery/2KAX4

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