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From: 2141smh@aluxe.UUCP (henning)
Newsgroups: net.invest
Subject: Re: Rental Property Depreciation
Message-ID: <358@aluxe.UUCP>
Date: Sat, 8-Sep-84 14:59:31 EDT
Article-I.D.: aluxe.358
Posted: Sat Sep  8 14:59:31 1984
Date-Received: Thu, 13-Sep-84 19:02:13 EDT
References: <126@ihdba.UUCP>
Organization: AT&T Bell Laboratories, Allentown, PA
Lines: 14

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From the keys of Steve Henning, AT&T Bell Labs, Reading, PA aluxe!2141smh

For information on renting your home see IRS publication 527, Rental Property.
When you convert your residence to a rental property, you can begin to take
depreciation on the building.  You figure depreciation on the lower of the
building's:
  1. fair market value at the time you convert it to a rental property, or
  2. the adjusted basis (original cost +/- capital additions or reductions).
If the period during which you rent your residence or put it up for rent is
less than 12 consecutive monthes, the IRS may apply limitation rules which
disallow depreciation and maintenance expenses from exceeding rental income.
However if you can show that you charged a fair rent for 12 months then you
are entitled to show a loss.