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My question is about depreciation for rental property. My…

Hello. My question...

Hello. My question is about depreciation for rental property. My rental property had no income during one year. In this case, since there was no income, I do not need to claim depreciation for that same year, correct?

Accountant's Assistant: The Accountant will know how to help. Is there anything else important you think the Accountant should know?

This is located in NH.

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Answered in 5 minutes by:
11/8/2017
Fred Rook
Fred Rook, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 94
Experience: 20+ years as a Certified Public Accountant, including 19 years working in public accounting firms with extensive tax, audit, write-up and consulting experience.
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Hello, my name is ***** ***** I will be happy to assist you. You can claim depreciation as long as the property is placed into service. Said another way, the IRS lets you deduct ordinary and necessary expenses required to manage, conserve, or maintain propety that you rent to others. You are allowed to deduct these expenses if your property is vacant, as long as you are trying to rent it. Such expenses include, but are not limited to maintenance, repairs, utilities, real estate taxes, mortgage interest, AND depreciation. Let me know if this answers your question. Thank you for choosing JustAnswer! Have a great day!

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Customer reply replied 3 months ago
Hello Fred. My question is about whether it's optional to claim depreciation in a year when I have no rental income.I prefer to not depreciate that year.(Also, I'd like to later sell the property and do not want to recapture that year's depreciation at the time of sale.)

You don't have to take depreciation for the year. You can always take the position that the property was not in service at the time and therefore no deprecation would be warranted.

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Customer reply replied 3 months ago
Thanks, ***** ***** to clarify: if the property is not in service, is it optional to deduct the other possible expenses -maintenance, repairs, utilities, real estate taxes, mortgage interest, etc) , if any?

Yes, you wouldn't deduct those either if the property is not placed in service.

Fred Rook
Fred Rook, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 94
Experience: 20+ years as a Certified Public Accountant, including 19 years working in public accounting firms with extensive tax, audit, write-up and consulting experience.
Verified
Fred Rook and 87 other Tax Specialists are ready to help you
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Customer reply replied 3 months ago
Thanks for the clarification, Fred.

My pleasure - glad I could help!

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Fred Rook
Fred Rook
Fred Rook, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 94
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Experience: 20+ years as a Certified Public Accountant, including 19 years working in public accounting firms with extensive tax, audit, write-up and consulting experience.

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