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Anne
Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 1732
Experience:  Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
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Hello, I bought 23 units apartment building in Jan 2013. This

Resolved Question:

Hello, I bought 23 units apartment building in Jan 2013.
This building was built in 1961year.
My question is "Depreciation".
I am wondering if this old apartment building could be depreciated for tax deduction?
If yes, how calculate depreciation?
This is Colorado.
Submitted: 10 months ago.
Category: Tax
Expert:  Anne replied 10 months ago.

Anne :

Hi

Anne :

Thank you for using justanswer

Customer:

Hi

Anne :

Yes, you may depreciate the building

Customer:

Please let me know.

Customer:

May?

Anne :

In fact , you NEED to depreciate the building

Customer:

Even if more than 50years old building?

Anne :

You depreciate the building from the time YOU purchase it

Anne :

doesn't matter if anyone else depreciated it in the past

Customer:

Can you tell me the calculation for depreciation?

Anne :

Yes, its done by a % set up by the IRS

Anne :

let me find that for you.....will take a minute

Customer:

Thank you so much.

Anne :

finding a good copy that you can read is the hardest part of answering this question

Anne :

please bear with me.........

Customer:

no problem

Anne :

almost there

Anne :

well, I am there.......just takes a minute for the information to load

Customer:

thank you

Anne :

Sorry its taking so long...., but depreciation is based on the property you're depreciating (the term "property" in this context is any thing depreciable, such as a car)

Anne :

and there are ALOT of depreciation tables

Anne :

However I think it should be done loading here in just a minute

Customer:

I want to make it sure that I can depreciate this 53years apartment building.

Customer:

Somebody told me that over 40years building can not be depreciated.

Anne :

You will not be able to depreciate the building over a 53 year live span

Anne :

the IRS decides how many years you can depreciate something based on the type of property it is

Anne :

for example: car is depreciated over 5 yars

Anne :

the 40 years somebody quoted you is for non rental business property............such as a general store for example

Customer:

You mean even if this building age is 53 years, I can depreciate this building from purchasing date for 40 years.

Anne :

rental property, like yours, is depreciated over 27 1/2 years

Anne :

yes

Anne :

Let me see if I can explain this a little better

Anne :

(please ask any questions along the way if you need to)

Anne :

the building may be old.......but its a new purchase for you

Anne :

For example.......let say you purchase a home strictly rental purposes

Anne :

the home may be 25 years old......but YOU didn't put the home "into service" (meaning you couldn't rent it until your purchased it)

Customer:

this is 23units commercial apartment building, not residential property.

Anne :

I know

Anne :

was hoping the example of the home would be easier to understand...........theory is the same

Customer:

residential 271/2 year, and commercial 40years??

Anne :

yes

Customer:

so you mean my case 40years ?

Anne :

no

Anne :

rental is 27 1/2 years

Anne :

if the building was an office bldg for example.......then it would be 40 years'

Customer:

Thank you so much.

Anne :

ok I found your table

Anne :

for depreciation

Customer:

It is good thing to know O can depreciate this 53years old building.

Customer:

Great!

Anne :

if you would like me to explain it to you (its not hard once you know what you're looking at), then I'll wait until you get to that page

Customer:

Thank you so much. I will take a look. And

Customer:

I appreciate your information.

Anne :

You're most welcome

Customer:

I do not have time now.

Customer:

Thank you.

Anne :

no problem. If you find you need help or you have a follow up question, you may come back to this thread by bookmarking it.......even after you rate and pay

Customer:

Thank you. I will. Have great day!!

Anne :

You too!

Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 1732
Experience: Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
Anne and 6 other Tax Specialists are ready to help you
Expert:  Anne replied 10 months ago.
Thank you for the accept and the excellent rating!

Please feel free to ask for me by name by putting "for Anne" in the question line

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