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Posted by krasi on March 10, 2007, 2:30 am
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I have a new real estate investment which was completed from
outside in 2006 and the inside is not done yet till a tenant
moves in. I understand that I can take a depreciation
allownace of $108,000 for the first year. Will the first
year be when the building is completed from inside or rented
etc. or should I take it in 2006?
Thanks.
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Posted by L K Williams on March 11, 2007, 3:50 am
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> I have a new real estate investment which was completed from
> outside in 2006 and the inside is not done yet till a tenant
> moves in. I understand that I can take a depreciation
> allownace of $108,000 for the first year. Will the first
> year be when the building is completed from inside or rented
> etc. or should I take it in 2006?
If you have invested so much money in this investment that
you would be entitled to a depreciation deduction of
$108,000, you certainly should be able to afford
professional help with your taxes. In fact, I would think
you really NEED professional help.
To answer your question, though, you start taking
depreciation when you place the asset in service. Since the
building is not complete and you cannot have a tenant, you
have not placed the building in service. So, you would not
be entitled to depreciation in 2006.
Lanny K. Williams, CPA
Nawarat, Williams & Co., Ltd.
Income Tax Services for Expatriate Americans
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
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Posted by Rich Carreiro on March 11, 2007, 3:50 am
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> I have a new real estate investment which was completed from
> outside in 2006 and the inside is not done yet till a tenant
> moves in. I understand that I can take a depreciation
> allownace of $108,000 for the first year.
How did you come up with that $108,000? Seems awfully high
for a single-unit property.
--
Rich Carreiro rlcarr@animato.arlington.ma.us
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Harlan Lunsford on March 12, 2007, 4:34 am
Please log in for more thread options Rich Carreiro wrote:
>> I have a new real estate investment which was completed from
>> outside in 2006 and the inside is not done yet till a tenant
>> moves in. I understand that I can take a depreciation
>> allownace of $108,000 for the first year.
> How did you come up with that $108,000? Seems awfully high
> for a single-unit property.
Not if you use section 179 for the property. (big grin!)
ChEAr$,
Harlan Lunsford, EA n LA
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Rich Carreiro on March 12, 2007, 8:34 pm
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>> How did you come up with that $108,000? Seems awfully high
>> for a single-unit property.
> Not if you use section 179 for the property. (big grin!)
I believe the section 179 election is not allowed for
residential real estate.
--
Rich Carreiro rlcarr@animato.arlington.ma.us
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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