My wife and I turned her home into a rental propety this year, I understand how to depreicate it but my question is the building value based on the

Asked by John, 85224 Thu Dec 31, 2009

year she purchased it or the year we converted it to a rental property?

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Brad Bergami…, Agent, Prescott, AZ
Thu Dec 31, 2009
The question is in what year do you depreciate, is that correct? Asked my wife, the CPA, said you can't depreciate the building for personal primary use. So the year you start using as income property is the year you use. But how do you get a basis (value) for that year so you can depreciate. I am not sure that the IRS will use a estimated value without an appraisal or Broker Price Opinion. Now that is where you should talk to your CPA for guidance.. mine didn't know for sure.
Good Luck and Happy Renting in 2010
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Alicia, , Phoenix, AZ
Thu Dec 31, 2009

Speak to a CPA. You'll get great real estate advice here, but only a CPA is qualified to look at your tax situation as a whole and offer advice.
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Paul Sammis…, , Scottsdale, AZ
Thu Dec 31, 2009
The straight line model is 27.5 years and you'll use the basis from the purchase price with an inclusion of capital expenditures. REALTOR's are reluctant to assist with tax questions because it is outside of our expertise. Call me and I'll get you a tax pro that can help you. Paul Sammis 949-232-8363
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Anna M Brocco, Agent, Williston Park, NY
Thu Dec 31, 2009
Why not refer your question to your tax consultant.

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