When depreciating house value, will i use fair market value at time I rented out house?

Question

I have gotten alot of good info the past couple of days about depreciating rental house but still confused about the house value I should calculate, i gotten some info on use the value i paid for it 14 years ago plus points and closing cost, and i've read use fair market value at time of change over to rental 4 years ago. if someone can direct me to where i can make sure one of these answers are right would be nice.

Answer 1

Basis of Property Changed to Rental Use :

When you change property you held for personal use to rental use, you figure the basis for depreciation using the lesser of fair market value or adjusted basis.

The basis for depreciation is the lesser of:

-The fair market value of the property on the date you changed it to rental use, or

-Your adjusted basis on the date of the change—that is, your original cost or other basis of the property, plus the cost of permanent additions or improvements since you acquired it, minus deductions for any casualty or theft losses claimed on earlier years' income tax returns and other decreases to basis.

Answer 2

You have to use the basis for the house, not the FMV. The basis includes the amount you paid for the house, points, realtor fees, etc. as well as major structural improvements or additions. Go to irs.gov and type in the search box "depreciation and basis" (without the quotes) and you should get the right code section.

Answer 3

the loan activity would be deductible only like on your guy or woman abode in case you look at the 4797, the columns ask for depreciation allowed or allowable, which skill in case you probably did no longer take it it fairly is imputed as in case you probably did specific, you fee depreciation which once you sell the home is retrieved to be certain your unquestionably income/or loss

Answer 4

this is what i found hope it helps along with others advice g/l