Renting Full Time If you move but keep your house as a rental property, you stop deducting mortgage interest on the building on the date of your move, and you begin taking rental property deductions and depreciation when tenants move in. The depreciation formula is the asset cost divided by its useful life. The useful life of residential rental property is 27.5 years. If you buy a building for $250,000 and allocate $50,000 to the land cost (land itself is not depreciable), the depreciation is $7,273 every year for 27.5 years. Because of depreciation, it is possible to make an actual profit but show a paper loss for tax purposes. Your rental income in this case is tax-free.
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Formerly Workinprogress H :55 M :over 29 yrs. Together : 33 D : college D : adult BD and left : May 2013 Separated Experimenting/Replay
