Depreciation when renting out an in-law suite

[Minsu Kim]

Hi,

I'm planning on buying a primary residence with FHA loan. I found out that there is a detached in-law suite in the property that I'm looking for, which fits for rent.

If I choose to rent it out, how much depreciation that I can get? The house is 430K 2700 sqft, where 600 sqft of them is for the suite.

BTW, it' in tennessee

Regards,

[Mary M.]

Depreciation is not a choice, afaik. You have to depreciate property used for business (ie rentals) not sure about an ADU but ask your CPA

ETA  a quote from BP.
"It will be depreciated over 27.5 years. Since it's outside of your main residence it won't qualify if you sell as part of the primary residence exclusion. So the portion of gain related to that ADU wouldbe taxable - or you can utilize a 1031 for that portion of the gain to have it be tax deferred as well."

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