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Posted by Bob on April 17, 2006, 10:35 pm
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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.
> Depreciation applies only if you a renting the property, and
> not merely because it is investment property. Perhaps
> thought that is why you meant.
>
> The 80% factor is what somebody might have told you is the
> average cost of property excluding the underlying land,
> which cannot be depreciated. Find out the land value and
> then subtract it, and then, if rental property, depreciate
> it ovoer 27.5 years.
Here in Hawaii (and maybe other places as well) many condos
are built on leasehold land. I would think in that
situation, the entire cost of the condo could be depreciated
(assuming of course it is rental, rather than personal use).
And the monthly lease payment would be deductable as well.
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