All Forum Posts by: Roberto A.

Ok got it, thank you!

Thank you so much for share your case, interesting you can compress the amount to depreciate.  I did not know that. So far i only had another suggestion which is to start this year and report 0 for all past years but not clear if compress the amount or not

Thank you so much Dave i appreciate your detailed explanation 

Can one forgets about the past 10 years didn’t do depreciation and start now with the original house value that it was bought?

The 27.5 years start now or they start when the house was originally bought? All 10 past years will have 0 depreciation

Thanks

hello experts,

Unfortunately we didn’t depreciate our rental property for years, can we start this year by putting 0 for all previous years and use the value of the house when originally bought minus the land value?

Thank you

@Bill B. thank you so much, this is the answer i was looking for:

“You depreciate the left over”

Sorry for the bad example but basically the depreciation portion is the value of the house when originally bought minus land value minus funds from 1031

Thanks again!

And thise numbers are just for the sake of example i can say capital gain 1M abd bought a 2M house for renting.  I still would like to know the answer to my question

What’s the amount i can depreciate?

Thank you

Oh, i forgot to mention, i live with my patents in their house and actually renting the property bought w 1031

Hi all,

Here is my basic case to understand depreciation when a property was bought using a 1031 fund

My primary residence was sold with a capital gain of $200,000

A new house of a listing value of $350k was bought with the intent to use this property as a rental, a 1031 was used to deferred gapital gain tax from first property sell

Let’s say the new propery land was valued at $100k and improvements at $250k

The capital gain from the sale of the first house was used as down payment 

My question is:

What’s the value of the tental property i can depreciate?

Is it the whole $250k or only the difference after money from 1031, which is $50k?

Thank you