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Updated about 3 years ago,
Depreciate Duplex that increased in value
Hey everyone,
I'm pretty new to investment properties and am looking for some tax advice.... I bought a duplex about 2 years ago for $200k where I live on one side and rent the other side for $1500 per month. I also had a new duplex built in May of this year for $275k where each side is rented for $1500 per month. The land value for each duplex is about $20k. Values in my area have gone up significantly and I'm curious if getting them re-appraised would allow me to depreciate more money over the next 27 years.
The duplex I live in is worth atleast $300k now ($100k increase) and identical duplexes as my new one are being sold by my builder right now for $360k ($85k increase). Will getting new appraisals allow me to depreciate that additional $185k in appreciation?
Thanks for any and all advice! I'll also need to get myself a CPA or tax person or something similar?