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Subject Author Date
Help with depreciation for condo investment Arco 04-15-2006
Posted by Arco on April 15, 2006, 2:59 am
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 I'm trying to figure out what percent of this condo I can
depreciate. I was taught that you can only dep about 80% of
real property. However, I have no land on this real
property, just a condo. Can I depreciate 100% of it?

Also, how many years do I use? 29.5, or 27.5? I'm unsure.

Any help is greatly appreciated!!!

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Posted by Paul Thomas, CPA on April 16, 2006, 2:10 am
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> I'm trying to figure out what percent of this condo I can
> depreciate. I was taught that you can only dep about 80% of
> real property. However, I have no land on this real
> property, just a condo. Can I depreciate 100% of it?

Unless it's a floating condo.........there is some
underlying land that you are part owner of. Even for condos
on the 17th floor.

Ask someone what percentage of the land is owned by you (in
theory you own 1/the number of units on that property).

> Also, how many years do I use? 29.5, or 27.5? I'm unsure.

Assuming it's not an office condo.....27.5 years on a
straight line begining with the month placed in service.

--
Paul Thomas, CPA
paulthomascpapc@bellsouth.net

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Stuart A. Bronstein on April 17, 2006, 12:04 am
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>> I'm trying to figure out what percent of this condo I can
>> depreciate. I was taught that you can only dep about 80% of
>> real property. However, I have no land on this real
>> property, just a condo. Can I depreciate 100% of it?

> Unless it's a floating condo.........there is some
> underlying land that you are part owner of. Even for condos
> on the 17th floor.

I'd always heard that condos could be 100% depreciated
because there was no direct ownership of the land, or the
land was such a minor part. But I couldn't find a case or
regulation to support that, so I suppose I was just wrong.

Stu

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Missy on April 16, 2006, 2:10 am
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Arco wrote:

> I'm trying to figure out what percent of this condo I can
> depreciate. I was taught that you can only dep about 80% of
> real property. However, I have no land on this real
> property, just a condo. Can I depreciate 100% of it?
>
> Also, how many years do I use? 29.5, or 27.5? I'm unsure.

You do not depreciate the land. You would need to contact a
real estate agent in your area to decide if 20% of the price
is the price of the land. It is the %age here. The 27.5 is
correct.

Missy Doyle

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Harlan Lunsford on April 17, 2006, 12:05 am
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Missy wrote:
> Arco wrote:

>> I'm trying to figure out what percent of this condo I can
>> depreciate. I was taught that you can only dep about 80% of
>> real property. However, I have no land on this real
>> property, just a condo. Can I depreciate 100% of it?
>>
>> Also, how many years do I use? 29.5, or 27.5? I'm unsure.

> You do not depreciate the land. You would need to contact a
> real estate agent in your area to decide if 20% of the price
> is the price of the land. It is the %age here. The 27.5 is
> correct.

While some real estates might be knowledgeble about area
conditions and relative land/building values, I would
hesitate to recommend this. Rather the local county
courthouse, or whichever taxing authority pertains, will
have the tax assessment as to all three factors.

ChEAr$$$$$,
Harlan Lunsford, EA n LA

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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