When to depreciate

Apr 14, 2008 2 Replies

I placed a piece of rental property into service on Dec. 17 2007. Do I have to claim depreciation for it on my taxes since it was put into service so late in the year? If I do how do i figure how much to claim?


see pub 946

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It's remarkable how friendly the IRS site has become. A couple clicks and there you go. Years ago, it was a mess.

Joe

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Yes, you have to claim depreciation. The month placed into service would be December. See table A6 on page 77, and use year 1 month 12.

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Table A-6. Residential Rental Property Mid-Month Convention Straight Line--27.5 Years

BTW, the property is assumed to be placed in service in the middle of December, which is pretty exact for your case. The ratio is

100/27.5/12/2 = 0.15151515151515151515151515151515, but you should use the table amount of 0.152.

========================================= MODERATOR'S COMMENT:

- that series is just 5/33. Rounding is good.

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