Depreciation

[Josh Thomas]

How do you calculate depreciation for a residential property?

[Naseer Khan]

@Josh Thomas Take the purchase price and separate the land value from the building value. County tax records may have this information available in property records. The land portion is not depreciable. Take the value of the building and divide by 27.5 because the IRS has allowed taxpayers to depreciate residential property over 27.5 years. That number will be the allowable depreciation per year.

This response neither constitutes legal advice nor establishes an attorney-client relationship. Inquirers must seek the advice of their own legal counsel prior to undertaking any course of action related to this inquiry.