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ottertail co mn | 100%, just have to come up with a value and depreciation schedule.
When you buy real estate, any hard asset that is not the land, is allowed to be depreciated
Example in 2003 I bought property with a rental house, I think we depreciated it over 27.5 years(there is a schedule in the irs book that says how long you have to depreciate) in 2021 I sold the property. I had to recapture the income of what I depreciated since 2003.
When you depreciate anything off of the real estate you purchased it will lower your basis on the land from what you paid. That is why you have to recapture the depreciation when you sell. If you never sell, your basis doesn’t matter to you so the more you are allowed to depreciate the better you are on your tax statement. Not sure how this works on stepped up basis after death and inheritance.
I am not an attorney or an accountant so I may possibly be 100% wrong. Contact a true professional that you pay to give you exact advice.
Also if you had a tile quote from a tile contractor of what it would cost that would give you an idea of where tow start depreciating. Again talk to the pros, I am an amateur… | |
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Tile Depreciation %
