Level 3

Question

Depreciation of Vacation Home

Forum|Forum|1 year ago
March 23, 2025
4 replies
26 views

New Client - rented out vacation home for 60 days last year. When I enter it for depreciation it is $4k less than the depreciation from last year?.

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abctax55

Level 15

Is your amount correct?

Maybe the prior preparer made a mistake.

HumanKind... Be Both

D

DBnrAuthor

Level 3

Triple checked amount of asset - just wondering since last year was the first year for rental if there was special depreciation for that? No depreciation report in copy of tax return

sjrcpa

Level 15

How did you get your basis amount?

The more I know the more I don’t know.

T

TaxGuyBill

Level 15

What about percentages? If the rental percentage was much lower this year, that could account for a much lower amount of depreciation.

It is also possible the prior year is wrong, such as depreciating 100% when it was less than that, or incorrectly including land as part of the depreciable Basis.

D

DBnrAuthor

Level 3

Thanks Bill - actually rented it out 5 days more this year ;{

Do you generally provide your client with the Depreciation schedules when you print their hardcopy?

sjrcpa

Level 15

Is only the building being depreciated?

Or is there personal property for which bonus depreciation was claimed last year?

The more I know the more I don’t know.

George4Tacks

Level 15

What do you get if you depreciate the land?

Answers are easy. Questions are hard!

Accountant-Man

Level 13

For real estate, the placed in service date uses the "mid-month" convention for depreciation in the first year, so a July 1 start date would have 5 1/2 months worth of straight line depr.

Second yar would be 12 months worse.

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