100% Depreciation for Investment Condo Rental

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100% Depreciation for Investment Condo Rental

Matt N.
Member since 2021 · 12 posts · 2 votes

Hi there! I just spoke with a CPA and was thrown a bit off guard. He mentioned that because I own a condo for a rental property, that I could take 100% of the purchase price and depreciate it over 27.5 years. I was used to hearing some CPAs say 90% building and 10% land, or even 80%/20%, but his argument was that because I own walls in for the condo, that 100% of my value is depreciable. Is this true?

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  • Aaron ZimmermanBusiness Member
    Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
    5y

    100% not true. There is a certain of value that must be allocated for the land. For instance, if there are 100 units in your complex, you own 1% of the building's land. I would recommend going to your county assessor's website and looking to see what is land and what is building. Otherwise, you can look at your appraisal. 

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  • Matt N.
    OP
    Member since 2021 · 12 posts · 2 votes
    4y

    Thanks. Should I look at this every year to see if my depreciation basis is updated?

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  • Natalie KolodijBusiness Member
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    Tax Strategist| National Tax Educator| Accepting New Clients · Member since 2014 · 3k+ posts · 4k+ votes
    4y

    It depends on the Condo is the actual correct answer. 

    Some have land ownership- some have none. 

    You do not, by default, have a land value. You need to check with your county assessor. 

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