A home was purchase around 6 years ago, for 450,000, with the structure having a value of about 200,000. Shortly after it was used as a rental property for 3 years. During this time 3 years worth of depreciation was taken on the home. After 3 years rental the home had approximately 50,000 worth of improvements made on it, however after the improvements it was no longer used as rental property, but instead as a second resident and investment home. Fast forward now, and a few thousand in repairs and improvements were made to get the home ready to be rented again.
When the home begins renting again, do you continue deducting the 200,000 structure from where you left off? What about the 50,000 in improvements, and the recent few thousand in repairs and improvements to get it ready for renting?
Thanks for the answers.
There's a tax thread in OT. Please post in it. http://forums.anandtech.com/showthread.php?t=2361895&highlight=tax
admin allisolm
When the home begins renting again, do you continue deducting the 200,000 structure from where you left off? What about the 50,000 in improvements, and the recent few thousand in repairs and improvements to get it ready for renting?
Thanks for the answers.
There's a tax thread in OT. Please post in it. http://forums.anandtech.com/showthread.php?t=2361895&highlight=tax
admin allisolm
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