Deprecation question for BRRR

[Brad Neihardt]

I want to rent out my primary property that I bought. This was a complete remodel that has significant value added. What value is used for depreciation? Is it the ARV value or?

[Michael Plaks]

Quote from @Brad Neihardt:

I want to rent out my primary property that I bought. This was a complete remodel that has significant value added. What value is used for depreciation? Is it the ARV value or?

Or.  :)
The initial purchase price plus the actual cost of remodel. ARV is irrelevant for taxes.

Then you subtract land value and depreciate the rest. Or you can go fancy and try cost segregation if you have room for more depreciation.