depreciation? - Posted by corby

Posted by Les on December 23, 2003 at 09:46:41:


  1. Depreciation is calculated on your “cost basis” for the property, which is unrelated to any loan you have on the property. The IRS has circulars which go into great detail on how to calculate depreciation on investment properties.

  2. You may be able to deduct a portion of the refinancing costs, some of which are amortized over the life of the new loan, as well as, any remaining “unamortized” costs from your old loan. This applies to both a primary residence, as well as to investment property.

depreciation? - Posted by corby

Posted by corby on December 22, 2003 at 18:21:10:

I recently paid off my old loan on a sfh by refinancing with cash out.The old loan was 88,000 the new loan is 120,000 can i now schedule my depreciation on the new loan amount?

Re: depreciation? - Posted by mikePA

Posted by mikePA on December 30, 2003 at 21:06:02:

short of you improving the property (i.e. improvements that would be allowable for capitalization), you’d have to stick with the cost basis…same thing in reverse, if you paid the loan off, you wouldn’t lose the depreciation just because there was no more loans outstanding…