|
Posted by Harlan Lunsford on October 19, 2007, 2:37 am
Please log in for more thread options
seaweedsl wrote:
>> Briefly, take purchase price, subtract value of land at that
>> time. Now add to this cost, we call it basis, costs of
>> improvements that you paid for, materials and labor, but NOT
>> supposed value of your time. Even is house is now worth
>> 60,000$, that's not the real basis of it for depreciation
>> purposes as you can readily tell.
>>
>> Then, starting with the month you started renting it out,
>> divide basis by 27.5 years which gives you annual
>> depreciation, but adjust for partial year in first year if
>> necessary, pro rata.
> And if I have no reciepts and did all the work myself?
Only what you spent for materials; nails, glues, boards,
plywood, etc etc.....
You might try to reconstruct records by contacting suppliers
for duplicate invoices; depending on the lapsed time of
course. If not, sit down now and to the best of your memory,
write down what and how much and for what did you spend
money. That record is better than nothing, and MAY; I
repeat MAY, hold up under audit, IF you get audited.
Yes, IRS does sometimes accept your word.
ChEAr$,
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 (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
| 
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap