Information on depreciation

[Paolo F.]

Good morning,

as I am very small I am trying to fill my tax return for my duplex by myself.

The IRS documentation seems clear but not on houses depreciation.

My doubts are:

1) Should I start using depreciation from the first year even if I do not need it in that year, or I can use it when it is needed? I fear that if I do not use it from the start I will not be able to use it anymore

2) Are there good explanations and examples on how to do it properly?

Thanks for any suggestion

[Natalie Kolodij]

@Paolo F. 

You will still need to claim depreciation in 2017- even though no income since it was in service. 

Your depreciable amount will be the amount you paid + qualifying closing costs. 

This amount will need to be then adjusted by the building value. 

If the county says the property is worth $100k and allocates $35,000 to building. Then 35% is your depreciable building value. 

Then 35% of your above purchase price + closing will be depreciable. 

I would not take into consideration 1 of the 2 being vacant. 

It should be depreciated over 27.5 years as of the date you purchased it. 

I end up amending a lot of returns due to this being done incorrectly so if you're really not sure I would recommend reaching out to a professional.