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March 10, 2025
Question

Depreciation on a rental addition

  • March 10, 2025
  • 1 reply
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Hey!

 

I have a rental property that had another part added onto it that cost $650,000. It was also apprised after the addition was made so do I use the new appraisal amount or the $650,000 it cost as my depreciation?

 

Thanks!

1 reply

March 10, 2025

You will depreciate the cost of the addition, not the appraised value.  

 

Here is some information you may find helpful: Tax Deductions for Rental Property Depreciation