Standardized deductions and depreciation of rental property

[Bala Murali Krishna Ummaneni]

Hi,

I have a tax related question on the rental properties. I read that rental property purchase value will be depreciated to 0 over the course of 27.5 years and that depreciation can be tax deducted every single year for the first 27.5 years.

I am wondering if the depreciation tax deduction can be uses on top of the standardized deductions (vs itemized deductions). 

I know that the tax deductions on the mortgage interest, property taxes, operating expenses can't be combined with the standardized deductions, but I am not sure about the property depreciation.

Appreciate your help.

Thanks,

Murali

[Michael Plaks]

Originally posted by @Bala Murali Krishna Ummaneni:

I am wondering if the depreciation tax deduction can be uses on top of the standardized deductions (vs itemized deductions). 

I know that the tax deductions on the mortgage interest, property taxes, operating expenses can't be combined with the standardized deductions, but I am not sure about the property depreciation.

You combined two very different things.

A. Personal itemized deductions, such as mortgage interest and property taxes on your personal residence: the home where you live. You compare your personal itemized deductions against the standard deduction and choose one or the other, whichever is bigger. You're right that you cannot combine them.

B. Rental property deductions, such as mortgage interest and property taxes on the rental property, as well all other operating expenses AND depreciation. These have nothing to do with personal itemized OR standard deduction - it's a totally separate part of your tax return. You claim those separately from personal (itemized or standard) - which you may call combining if you wish.