How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask emc011075 Your Own Question
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 2188
Experience:  IRS licensed Enrolled Agent and tax instructor
Type Your Tax Question Here...
emc011075 is online now
A new question is answered every 9 seconds

I purchased an apartment in NYC about 10 years ago ,000. I

Customer Question

I purchased an apartment in NYC about 10 years ago for 760,000. I decided in 2015 to rent it out so i put 145,000 of improvements into it. I can depreciate the building portion of the 760,000 correct? The land is assessed at 9,762 of 70,376 total assessment. Is it correct to depreciate the building over 27.5 years at 9,762/70,376 = land portion (can't depreciate). Reminder would be the building at 653,600 (760,000 * 86%) How do I depreciate the improvements? Do they need to be broken down and depreciated separately?
Submitted: 7 months ago.
Category: Tax
Expert:  emc011075 replied 7 months ago.

Hi. My name is ***** ***** I will be happy to help you.

It is all about timing. All improvements you did before you put the place on the market has to be added to the basis of the property (purchase price + improvements = adjusted basis)

For the basis for depreciation you will need to take lower of fair market value on the day of conversion and your adjusted basis. Than you reduce the amount by the value of the land. You will have to use mid-month convention for the house depreciation, meaning if you start renting it in jun, you will take 7/12 of your yearly depreciation in the firs year.

Customer: replied 7 months ago.
Customer: replied 7 months ago.
for some reason I cant give you a rating. I can't select any stars.
Expert:  emc011075 replied 7 months ago.

I am sorry, I have to check the box.

Do you have any questions? Is there anything else I can help you with today?