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 Robin D. Your Own Question
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15596
Experience:  15years with H & R Block. Divisional leader, Instructor
Type Your Tax Question Here...
Robin D. is online now
A new question is answered every 9 seconds

I want to deduct depreciation every year on my my residential

This answer was rated:

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



Robin D. and 4 other Tax Specialists are ready to help you