Rule for Depreciating 2nd Home on Taxes

[Larry Shaw]

My general understanding is that you can not depreciate your primary residence, but you can depreciate an investment asset on taxes. If I use a 2nd home loan, can I still depreciate that asset if I STR 11 months of the year, and stay in it 1 month? Is there a definitive rule I can use when determining when I can or can't depreciate a 2nd home?

[Brad Jacobson]

My understanding is that as long as the home qualifies as a rental property, which your 11 month STR definitely would, that you should have no problem taking advantage of the depreciation tax advantages. If your primary income is real estate based, you might want to even consider a cost segregation study to offset a massive amount of taxes.

You're correct in that you can't depreciate your primary residence. However, if you have a space in the residence that is used for work (office, salon, ADU, etc.), that space can be depreciated as well like a rental property.

Either way - make sure you're having these conversations with the right tax professional!