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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15596
Experience:  15years with H & R Block. Divisional leader, Instructor
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I want to deduct depreciation every year on my my residential

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I want to deduct depreciation every year on my my residential rental property that was placed in service Aug-2005. My adjusted basis @8/2005 is $252,893. (= Oct 2001 purchase price of $248,000 + $4,893 of fees, title insur, etc.). The $248,000 was not broken out between land value and building, however, per county assessment records, the assessed property value for 2001 is $190,310 (= 115,110 bldg/ 75,200 LAND). The 2005 assessed value is $362,350 (=227,350 bldg/ 135,000 LAND). By no other improvements were made, ie, ADJ basis is still $252,893.

Question-- For MACRS deduction (GDS), 1. What is the depreciable basis 2. Recovery period? 3. Annual depreciation expense for Tax years 2005 - 2012?

Thanks- [email protected]

Robin D :

Hello and thank you for using Just Answer,
The basis for starting depreciation is $252,893 - $75,200 ($177,693). The recovery period is 27.5 years for residential rental real property.
The depreciation is calculated using the table for residential rental starting with the month of August 1.364 for the first year and for years 2 - 6 use 3.636
2005 = $2423
2006 to 2012 = $6462

Customer:

Thanks!

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