I had a home rented out in 2006, do I (or can I file form
4562 for depreciation)? I already filled out Schedule E - Supplemental Income and Loss. In case i can fill out form 4562, how can I file my home (in term of cost, cost of land) if the current value of my house is $120,000 thanks in advance
Depreciation is based on your basis - cost plus any improvements - not current value. You should apportion the basis between land and house based on an appraisal or relative tax valuation.
The form 4562 is filed only when there are changes to your assets for the rental. If you bought or sold things, then you file the 4562, otherwise you claim the depreciation and hold on to your worksheets.
Realizing after that you where wondering of how, I would look at the instructions for the form. The link is:
Time to hire a tax professional. At least for the first year.
MIssy Doyle
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