The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: Rental property loss? Date:  2/11/2013  8:13 PM
Author:  ptheland Number:  117737 of 129771

Not a response to you question, but your post causes me to ask how does a SFH ever have a zero basis?

It can't. Or more correctly, it shouldn't. But since we have to deal with depreciation that was allowed or allowable, if the depreciation [incorrectly] allowed equals the original cost, the basis will be zero.

There's also the issue of timing. MACRS started in 1987. And I think that residential real estate has always been 27.5 year property. Therefore, this year - 2013 - would be the final year of depreciation for residential real estate placed in service in 1987.

Copyright 1996-2019 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us