Federal tax filing, price of the house or current market value?

7 Replies

To determine depreciation for federal tax filing do you apply the original price of the house or the current market value?

Bought the house 3 years ago and immediately came into into rental service. This year the value is up due to current market conditions. So you are saying to stick to the cost basis at the time of acquisition? The current value does not come under consideration in any way?

Originally posted by @JayCinta Henry :

Bought the house 3 years ago and immediately came into into rental service. This year the value is up due to current market conditions. So you are saying to stick to the cost basis at the time of acquisition? The current value does not come under consideration in any way?

No it does not. 

 

Originally posted by @Ashish Acharya :
Originally posted by @JayCinta Henry:

Bought the house 3 years ago and immediately came into into rental service. This year the value is up due to current market conditions. So you are saying to stick to the cost basis at the time of acquisition? The current value does not come under consideration in any way?

No it does not. 

 

Thank you much!

 

One more question. Last December I closed on a primary house. That month  was a grace period, didn't pay a mortgage. For my personal federal filing I can deduct closing costs? Including foundation repair? Bank insisted on this before funding. The contract was amended to incorporate the cost of foundation repair into the total house purchase price. I do have the repair invoice.