Rental Property Depreciation

saltoftheearth15 · Joined: 22 Feb 2008 Posts: 1

I have a two-fold question.

My first question is this: I have a rental property I have owned since
2002 as a 51% partner. I have not been claiming depreciation on it. I
would like to begin doing this now. How can I begin to do this? Do I
just start claiming it even though I haven't been doing it from the
beginning?

My second question is that I purchased the other 49% this past year.
Because each portion of the property has a different tax basis how do
I claim each portion's depreciation separately?

Thank you!

Archived from group: misc>taxes

Arthur Kamlet · Joined: 25 Aug 2007 Posts: 2053

In article ,
saltoftheearth15 wrote:
>I have a two-fold question.
>
>My first question is this: I have a rental property I have owned since
>2002 as a 51% partner. I have not been claiming depreciation on it. I
>would like to begin doing this now. How can I begin to do this? Do I
>just start claiming it even though I haven't been doing it from the
>beginning?

Form 3115 is used to change your accounting method including
changing from not having claimed depreciation to claiming the
correct amount. Best to file it now and make it retroactive.

It is not easy to tackle this one, so professional tax help
might be needed.

>My second question is that I purchased the other 49% this past year.
>Because each portion of the property has a different tax basis how do
>I claim each portion's depreciation separately?

Add the second half of the property as a new asset, 27.5 year class
life, mid-month, S-L.

--

ArtKamlet at a o l dot c o m Columbus OH K2PZH

cbritt · Joined: 22 Feb 2008 Posts: 4

Arthure Kamlet is absolutely right that Form 3115 - change of
accounting method can be used to correct depreciation. If you plan to
do that, you may want to check into DepreciateEm.com (http://
www.depreciateem.com) which in 3 easy steps maximizes your
depreciation deduction. It also has a learn more section that explains
depreciation. This application created by TReXGlobal.com (http://
www.trexglobal.com) is free to use.

C

On Feb 21, 9:59 pm, kam...@panix.com (Arthur Kamlet) wrote:
> In article ,
>
> saltoftheearth15 wrote:
> >I have a two-fold question.
>
> >My first question is this: I have a rental property I have owned since
> >2002 as a 51% partner. I have not been claiming depreciation on it. I
> >would like to begin doing this now. How can I begin to do this? Do I
> >just start claiming it even though I haven't been doing it from the
> >beginning?
>
> Form 3115 is used to change your accounting method including
> changing from not having claimed depreciation to claiming the
> correct amount. Best to file it now and make it retroactive.
>
> It is not easy to tackle this one, so professional tax help
> might be needed.
>
> >My second question is that I purchased the other 49% this past year.
> >Because each portion of the property has a different tax basis how do
> >I claim each portion's depreciation separately?
>
> Add the second half of the property as a new asset, 27.5 year class
> life, mid-month, S-L.
>
> --
>
> ArtKamlet at a o l dot c o m Columbus OH K2PZH

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