Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (12) | Ignore Thread Prev | Next
Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 124931  
Subject: Re: Rental Depreciation Date: 10/23/2009 3:22 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
BuffyII: "I'm looking at pg 14 (Limits on Rental Losses) "if your modified adjusted gross income is $100,000 or less....)

. .

Our MAGI should be about $170K this year and I don't suspect it will dip below $150K in the near future. The house value is approximately $225K, I believe I would run about between $2-5K loss the first year.

So let's see if I have this right:

If I have this right we could depreciate the house at 1/27.5 a year (~$8200)"

I will let the resident pros handle the balance, you are probably seriously overestimating the depreciation.

You need to separate/allocate the $225k value between land and improvements. Land is not depreciable; only the improvemnts are depreciable.

Your depreciation amount would be equal to (225k - value of land)/27.5.

Depending upon the size of your lot and value of dirt in your locale, it is possible that 50% or more of the total value of your house is in the land, and, thus, not depreciable.

Regards, JAFO
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (12) | Ignore Thread Prev | Next


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.