All Forum Posts by: Webster Edpao

Originally posted by @Tony Kim:

Originally posted by @Webster Edpao:

Originally posted by @Tony Kim:

Originally posted by @Webster Edpao:

So according to this pdf, this particular property has improvements of $228,273.

The house is selling for $599k. Lets say it sells for $600k. Lets say I put $120k down and turn it into a rental.

What is my cost basis?

Then what is my bonus depreciation? Could someone walk me through?

Thanks for everyone humoring my newbness.

Your starting cost basis is 600K plus eligible closing costs.

Your basis for depreciation is that same number multiplied by 0.7222412 (or 228,273 divided by 316,062). But this has nothing to do with bonus depreciation...which is something that comes into play when you do things like remodel.

 Got it. So bonus depreciation is the extra costs I put in after purchase? Lets ignore bonus depreciation then. 

So if I had REPS status, in this particular case, how much could I deduct if I chose to lump the deduction in one year rather than 27.5?

Your REPS status does not change how much you can expense. It will only determine how much net passive losses you can offset against your ordinary income. 

Your depreciation deduction will ordinarily be based on Table A-6 of IRS publication 946, which is basically 27.5 years. (link below)

https://www.irs.gov/publications/p946

 So in this particular example, how much passive loss can I offset against my ordinary income?

Originally posted by @Tony Kim:

Originally posted by @Webster Edpao:

So according to this pdf, this particular property has improvements of $228,273.

The house is selling for $599k. Lets say it sells for $600k. Lets say I put $120k down and turn it into a rental.

What is my cost basis?

Then what is my bonus depreciation? Could someone walk me through?

Thanks for everyone humoring my newbness.

Your starting cost basis is 600K plus eligible closing costs.

Your basis for depreciation is that same number multiplied by 0.7222412 (or 228,273 divided by 316,062). But this has nothing to do with bonus depreciation...which is something that comes into play when you do things like remodel.

 Got it. So bonus depreciation is the extra costs I put in after purchase? Lets ignore bonus depreciation then. 

So if I had REPS status, in this particular case, how much could I deduct if I chose to lump the deduction in one year rather than 27.5?

So according to this pdf, this particular property has improvements of $228,273.

The house is selling for $599k. Lets say it sells for $600k. Lets say I put $120k down and turn it into a rental.

What is my cost basis?

Then what is my bonus depreciation? Could someone walk me through?

Thanks for everyone humoring my newbness.

Its on my personal property tax bill. But I want to be able to look up on houses I may want to purchase and most county tax sites do not break it down.

Is there an estimate that most cpas use if their client is thinking about purchasing a rental property?

for example... no breakdown here... (just a random house that was listed for sale)

But the information is not readily available online is it?

👍🏽 ok got it.

Is that true if say the house was purchased as a shortsale or on auction? It would be based on the auction price?
 

Hi. First post. 😁

I understand that to determine depreciation, one takes the FMV minus the cost of the land and divides bu 27.5, correct?

However, how does one determine the cost of the house(alone) on the property? Is it public info on some county tax websites? Is there a way to estimate a home’s depreciation before purchasing it?

Thanks. I tried using search function and find a bunch of info on various depreciation predicaments but nothing on my specific question(but perhaps i am not searching correct terms since im a newb)