Can you depreciate a house the first year you bought it? What do I need to show my house payment to deduct interest? What is the minimum $ amount of deductions.
Can you depreciate a house the first year you bought it?
Yes, at least for the portion of year that you owned it.
What do I need to show my house payment to deduct interest?
Your lender should send you a 1098, mortgage interest statement.
What is the minimum $ amount of deductions.
Not clear about the question, but there isn't a "minimum" dollar amount of deductions.
Your best advice is to speak directly with your tax professional as they will be able to answer your questions specific to you, your situation, and your state's tax laws.
Quote:Can you depreciate a house the first year you bought it? Lennyseleven(Nick),
There are a couple of facets to your question that did not really get addressed in the previous responses. Let's clarify:You are allowed a prorated depreciation expense for the first year you place your investment property into service. Notice, I said place ...into service. Mere ownership does not automatically entitle you to a depreciation expense.
If you are talking about a rental property, your depreciation entitlement starts on the date you make the property ready and available for rent. If you bought the property last month, take a month or so to rehab to make the property ready for rental use, then begin advertising for tenants starting Jan 1, 2005, your property is placed into service on Jan 1, 2005. You are not entitled to a depreciation expense for your period of ownership prior to Jan 1, 2005.
If the property you are asking about is your primary residence, then the answer is NO. You are not allowed any depreciation expense for your personal residence.Hope this helps clear up the issue.
Can you depreciate a house the first year you bought it?
Yes, at least for the portion of year that you owned it.
What do I need to show my house payment to deduct interest?
Your lender should send you a 1098, mortgage interest statement.
What is the minimum $ amount of deductions.
Not clear about the question, but there isn't a "minimum" dollar amount of deductions.
Your best advice is to speak directly with your tax professional as they will be able to answer your questions specific to you, your situation, and your state's tax laws.
Roger
If it's a rental, no, there's no minimum deductions. Look at IRS publications 946 and 527 for info on depreciation and rental properties.
Quote:Can you depreciate a house the first year you bought it? Lennyseleven(Nick),
There are a couple of facets to your question that did not really get addressed in the previous responses. Let's clarify:You are allowed a prorated depreciation expense for the first year you place your investment property into service. Notice, I said place ...into service. Mere ownership does not automatically entitle you to a depreciation expense.
If you are talking about a rental property, your depreciation entitlement starts on the date you make the property ready and available for rent. If you bought the property last month, take a month or so to rehab to make the property ready for rental use, then begin advertising for tenants starting Jan 1, 2005, your property is placed into service on Jan 1, 2005. You are not entitled to a depreciation expense for your period of ownership prior to Jan 1, 2005.
If the property you are asking about is your primary residence, then the answer is NO. You are not allowed any depreciation expense for your personal residence.Hope this helps clear up the issue.