Can I depreciate my VA loan property?

Question

Military guy here, I used the VA loan to buy a home in Texas, lived there for 2 years then got orders to Florida. I’m currently renting it out (3 months now) and changed the home insurance to rent out. The property is still under my name through the VA loan. Can I depreciate the property? Or do I have to refinance into a conventional loan and wait for next years taxes to depreciate?

J Zev J. · Answer

@David Navidad - It shouldn't matter if the loan is VA or conventional to depreciate it.

Rj Lindemann · Answer

The type of loan that you have shouldn't impact your ability to depreciate an asset, since the asset and the lien on that asset (the loan) are two seperate items.

David Navidad · Answer

Account Closed thanks for the help! 🙏🏽

Account Closed · Answer

No, it is all done when you file your 2021 taxes. Just keep all records and receipts so you can file properly. You can use a CPA, Taxpreparer, TurboTax Home & Business (available at Staples & Office Depot) it walks you through the steps using "Yes/No" questions) or by getting forms from IRS.gov)

David Navidad · Answer

Account Closed I don’t live in it anymore. I leased it out to a tenant 3 months ago. Was there something I had to fill out or do to change it to a rental?

Account Closed · Answer

You can't depreciate a property you live in. However, if you lived in the property for 2 of the last 5 years you are not taxed on the capital gains. When you do your taxes, there is a form that says you sold the property, when you sold it and for how much.

And once it becomes a rental, there is a form for when you changed it to a rental, how many days it was rented in the tax year, how much you collected, etc and you have to depreciate the property from then on. It's IRS rules. They will treat it as depreciated even if you don't take the wonderful tax writeoffs it offers.

David Navidad · Answer

I knew it. Thanks a bunch!

Can I depreciate my VA loan property?

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