Depreciate a rental property bought with 1031 capital

[Roberto A.]

Hi all,

Here is my basic case to understand depreciation when a property was bought using a 1031 fund

My primary residence was sold with a capital gain of $200,000

A new house of a listing value of $350k was bought with the intent to use this property as a rental, a 1031 was used to deferred gapital gain tax from first property sell

Let’s say the new propery land was valued at $100k and improvements at $250k

The capital gain from the sale of the first house was used as down payment 

My question is:

What’s the value of the tental property i can depreciate?

Is it the whole $250k or only the difference after money from 1031, which is $50k?

Thank you

[James Wise]

Originally posted by @Roberto A.:

Hi all,

Here is my basic case to understand depreciation when a property was bought using a 1031 fund

My primary residence was sold with a capital gain of $200,000

A new house of a listing value of $350k was bought with the intent to use this property as a rental, a 1031 was used to deferred gapital gain tax from first property sell

Let’s say the new propery land was valued at $100k and improvements at $250k

The capital gain from the sale of the first house was used as down payment 

My question is:

What’s the value of the tental property i can depreciate?

Is it the whole $250k or only the difference after money from 1031, which is $50k?

Thank you

 Welcome aboard Roberto. I recommend setting up some keyword alerts for 1031.  With he keyword alerts you'll get a notification anytime people are talking about them here on BP. Tons of investors, CPAs & the like on here spending a ton of time talking about 1031's here on BP. @Dave Foster is one that comes to mind but there are many many others so you'll definitely wanna get those alerts setup.

Good luck to you & I'll catch you around the forums.