I bought a condo in 2005 which has been my priimary residence since. In 2012 I rented out one room of it. So I want to deduct half of all my expenses . For depreciation, it asks "Date acquired". Do I put Jan 1, 2012 or when I bought it in 2005?
You realize any common areas in your condo are not part of your rental. So you might wish to reexamine the 50% number.
The basis of property placed into rental service is the smaller of cost basis or fair market value on day it is placed into service,
Depreciation of residential rental property begins on date it is ready for rental, and continues over 330 months.
Good points. But, "For depreciation, it asks "Date acquired". Do I put Jan
1, 2012 or when I bought it in 2005?"========================================= MODERATOR'S COMMENT: Asked and answered.
Form 4562 asks "month and year placed in service", not "date acquired".
I am using an online site to file taxes and it only asks "Date acquired"
As Arthur said, "Depreciation of residential rental property begins on date it is ready for rental, and continues over 330 months."
Is there something about that that is difficult to understand?
___ Stu
"Faraz H" wrote
You "acquired" it for rental purposes on the date you first placed it into service as rental property.
The software has a minor bug. It should use the phrase "placed into service" or "available for rent". Note that this means when you started advertising for renters, even if it not occupied. This is good because it means you can deduct condo fees during the period.
If your condo has two bedrooms, the percent rental is the square foot of the area used exclusively for renting divided by the entire square foot of the whole house.
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