Can I depreciate at 100% after moving out of my house hack?

3 Replies

I owner/occupy a duplex. I have two questions:

  1. 1. Let's say I replace the roof, depreciate over 27.5 years, and move out exactly 2 years later. During years 0-2, I can only deduct 50% of this depreciation. Am I able to deduct 100% of the depreciation for years 2-27.5?
  1. 2. If I replace the kitchen cabinets in my unit, and move out 2 years later, am I able to deduct the depreciation of those cabinets during years 2-5?
Originally posted by @Nick Morgan :

I owner/occupy a duplex. I have two questions:

  1. 1. Let's say I replace the roof, depreciate over 27.5 years, and move out exactly 2 years later. During years 0-2, I can only deduct 50% of this depreciation. Am I able to deduct 100% of the depreciation for years 2-27.5?
  1. 2. If I replace the kitchen cabinets in my unit, and move out 2 years later, am I able to deduct the depreciation of those cabinets during years 2-5?

- Yes, you will place the asset in place when you convert the second unit into rental. You get to depreciate over 27.5 years, not 2-27.5. Your 27.5 starts the day you convert it into rental. 

- yes, you get to depreciate the lower of the basis or FMV of the renovation after you move out as an improvement over 27.5 years.

Originally posted by @Nick Morgan :

Thanks for the reply, @Ashish Acharya. Just to clarify - it sounds like any improvement I make to my own unit can be fully deducted (at the lesser of the basis or FMV), under the standard depreciation schedule, starting the day I move out?

Usually, yes.