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We put a house into rental after owning for two years. We frankly got a great deal on the property and made some capital improvements, like a new roof and refinished floors. DH is doing taxes and Turbo Tax seems to be wanting us to use the purchase price for depreciation, not the value of the property when put in service. Considering the significant appreciation and improvements done, this seems insane to me. (Our property taxes went up 30% in those two years.)

How do we approach this?

IP,
cross posted on tax strategies board
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cross posted on tax strategies board

As answered on the other board, DH needs to make sure TT is using the date placed in service as a rental to start the depreciation, rather than the acquisition date. Sorry, not sure how TT does that, but the other tax programs I used for rental properties have always asked for both the acquisition date and the date placed in service.

AJ
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