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Financial Planning / Tax Strategies


Subject:  Re: Rental Property Date:  1/22/2000  3:40 PM
Author:  mt2climb Number:  25744 of 127513

Hey Taxees,

Good info, Taxslave, and thanks for the link to IRS Pubs. I am working on some of the same issues.

Re depreciation:
Pub 527 tells me to use the lesser of cost basis+improvements or FMV at the time I put my love-shack into rental service. Does an assessment notice from my county tax assessor count to fmv? I personally think I may have been able to get a better price at the time, but did not think to pay for an evaluation when I began renting a couple of rooms while I was out of the country.

Also, if I have part of the place (2 of 4 br's) rented out, is 50% of expenses about right? Renters had access to common areas: kitchen, garage, laundry, living room. Additionally, I was gone a good percentage of the time, but what I was charging per room would not have been fmv for the whole house.

Any thoughts on the matter greatly appreciated!

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