Discussion:Mixed use property

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

Jump to: navigation, search

Discussion Forum Index --> Tax Questions --> Mixed use property

Www.cpa1.biz (talk|edits) said:

7 March 2007

I am trying to clarify something. If TP has a property that they lived in durng the year that they want to convert into rental property, does the mixed use property come into play?

Client lived in home from Jan to July and moved out in July. She then turned the property into a rental. Is she going to be allowed to take depreciation, and any other rental expenses over her rental income when she actively participated?

Death&Taxes (talk|edits) said:

7 March 2007
When she ceased use, it became rental property; this is different from the vacation home rules.

Deback (talk|edits) said:

March 7, 2007
Yes, she will start the depreciation on the date the property was available to rent. The normal expenses can be deducted beginning on that date, so you'll need to prorate the property taxes, mortgage interest, and house insurance for the period the property was available to rent.

To join in on this discussion, you must first log in.
Personal tools