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Updated over 4 years ago, 05/25/2020
Can I take partial depreciation?
Hi all! I had a question when I started doing taxes for my rental property for the year 2019. The unit was rented for the entire year. So here's the scenario.
Total income from rental = $10,000
Expense (including repairs, mortgage interest, taxes but not including depreciation) = $6000
Depreciation for 2019 is about $7000. But if I take the entire depreciation, my total expenses comes up to $6k + $7k = $13k which is $3k beyond my income.
So here are my questions.
1. If I take entire depreciation of $7k, and have $3k in losses, can I carry over this loss into next years taxes for the rental?
2. Or can I take partial depreciation of $4k just enough to offset the income?
Your expertise in this matter will be appreciated.