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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
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