Foreign Rental Property - Depreciation Method and Asset Life

Forum|Forum|1 year ago
March 21, 2025
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I have a rented property in a foreign country. The property was rented out before 2024, but since I became a Greencard/resident in 2024, I have to report the income I earned from in 2024.

I was wondering if "Alternative MACRS Straight Line" and "30" years asset life is the correct selection? I get different results saying I need to choose "40" asset years and mix results when choosing a depreciation method because it's a foreign rental property. What are the correct selections?

Best answer by DianeW777

It depends on the date the property was placed in service. If it was after 2017, then 30 year life is appropriate, prior to that date every foreign rental property was 40 years. Check to be sure you have entered the correct date it was placed in service for rental.

Foreign Rental Property Depreciation Rules:

Your property in a foreign country is depreciated over a 30-year or 40-year period, depending on when it was first placed in service for rental use. Instead of the 27.5 year for US residential properties the period is different.

Prior to 2018, depreciation of foreign residential property was limited to 40-year period.
2018 and Future: New assets placed in service now get the lower 30 year period.

@johnmarkplusplus

DaveF1006

No. ‌It's strictly a 40-year ADS Straight Line) depreciation method.

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johnmarkplusplus

No text available

DianeW777Answer

Foreign Rental Property Depreciation Rules:

Prior to 2018, depreciation of foreign residential property was limited to 40-year period.
2018 and Future: New assets placed in service now get the lower 30 year period.

@johnmarkplusplus

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