what determines the top line amount for depreciation

[Doug Jennings]

What determines the amount that can be depreciated in a property?  (tax assessment, loan amount or some other factor)

[Kenneth Cowan]

Brandon hall recently did a blog that was somewhat about this (BARRRR). Costs up to get rent ready can be depreciated. After rent ready, capital improvements can be added to basis to depreciate, operating costs are expensed in year incurred.

Check out the article for some tips on that. But the above post is right: purchase price, less allotment for land cost, plus closing costs and costs to make rent ready. Then divide by 27.5 to get per year amount.

As always, ask a tax pro that knows their stuff. Maybe Steven Hamilton II can confirm.