When to depreciate property

[Horacio Gutierrez]

Hello,

When do you start depreciating your rental property is it when you buy the home that's when the 27.9 years start to depreciate. Also can you only depreciate a property meanwhile you have a loan or that doesnt matter?

Thanks,

[Jaron Walling]

You start depreciating as soon as the "for rent" sign hits the yard. It's 27.5 years and only the structure (house) can be depreciated. The value of the land isn't part of that. If you want to go to another level find qualified CPA to preform a "cost segregation" on the property. You can break-out individual parts of the house and depreciate at a faster rate. The tax savings are bigger on on multi-family but it's good to learn... call that investing goals.