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BullredsRus 
LSU Fan
Baton Rouge
Member since Aug 2007
334 posts
| Depreciation of a rental house (Posted on 2/8/13 at 1:47 pm)
I bought a rental house in November of last year. I'm doing my taxes right now, and Turbotax is giving me a $600 depreciation on it (purchase price was $195). Does this sound right? Are they giving me depreciation of a pro-rated amount since I purchased so late in the year?
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I Love Bama 
Alabama Fan
Alabama
Member since Nov 2007
27159 posts
| re: Depreciation of a rental house (Posted on 2/8/13 at 2:01 pm to BullredsRus)
200k on a rental house? damn brah...what kind of rent are you getting?
Sorry I am no help on your question.
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Tigah in the ATL
LSU Fan
Atlanta
Member since Feb 2005
20692 posts
| re: Depreciation of a rental house (Posted on 2/8/13 at 2:09 pm to BullredsRus)
Well, it does depend on when you start it. If you bought it in Dec, that might be right.
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Poodlebrain
LSU Fan
Way Right of Rex
Member since Jan 2004
12701 posts
| re: Depreciation of a rental house (Posted on 2/8/13 at 2:27 pm to BullredsRus)
Residential rental properties get depreciated straight line over a 27-1/2 year period, and they are subject to the mid-month convention, which means they are treated as placed in service on the 15th daqy of the month. So you would get 1-1/2 months worth of depreciation for 2012. That means you get 1.5/330 = 0.454545% of the basis in the building for depreciation (some of the purchase price should be allocated to the land which is not depreciable).
Let's assume you allocate $40,000 of purchase price to land. You have $155,000 of depreciable basis in the building. $155,000 x 0.454545 = $705 of depreciation.
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Layabout 
UNO Fan
Baton Rouge
Member since Jul 2011
4478 posts
| re: Depreciation of a rental house (Posted on 2/8/13 at 3:16 pm to BullredsRus)
I owned a rental house for twenty years and one of the hardest things about it was keeping up with all the depreciation accounts. All major repairs and improvements had their own depreciation schedule and there was no TurboTax to help back then. It's why accountants stay in business.
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Cholo 
Arkansas Fan
El Paso, Texas
Member since Oct 2012
976 posts
| re: Depreciation of a rental house (Posted on 2/8/13 at 3:38 pm to Layabout)
Trying to figure this out right now. Started renting out my house in Central Texas last February.
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BullredsRus
LSU Fan
Baton Rouge
Member since Aug 2007
334 posts
| re: Depreciation of a rental house (Posted on 2/8/13 at 3:44 pm to I Love Bama)
It's actually a duplex. I get 1200 per unit.
Thanks Poodlebrain, that pretty much answers my question. I've always used turbotax with no issues, but I'm thinking of calling a CPA this year bc there are things that just don't look right and there is no one to answer my questions with turbotax
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