Comments on: I have 2 investment properties in Euclid, Ohio.How do I determine the basis and depreciation for tax purposes. http://realestate.realhow.com/i-have-2-investment-properties-in-euclid-ohiohow-do-i-determine-the-basis-and-depreciation-for-tax-purposes/ Socially Responsible Real Estate Investing Wed, 03 Dec 2008 13:01:39 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: tma http://realestate.realhow.com/i-have-2-investment-properties-in-euclid-ohiohow-do-i-determine-the-basis-and-depreciation-for-tax-purposes/comment-page-1/#comment-123 tma Sat, 03 Nov 2007 05:39:48 +0000 http://realestate.realhow.com/i-have-2-investment-properties-in-euclid-ohiohow-do-i-determine-the-basis-and-depreciation-for-tax-purposes/#comment-123 You would only claim depreciation if these are rental properties, not if you are buying and selling the houses. You would only claim depreciation if these are rental properties, not if you are buying and selling the houses.

]]> By: bostonianinmo http://realestate.realhow.com/i-have-2-investment-properties-in-euclid-ohiohow-do-i-determine-the-basis-and-depreciation-for-tax-purposes/comment-page-1/#comment-122 bostonianinmo Fri, 02 Nov 2007 13:22:14 +0000 http://realestate.realhow.com/i-have-2-investment-properties-in-euclid-ohiohow-do-i-determine-the-basis-and-depreciation-for-tax-purposes/#comment-122 You must be doing something wrong with the software. Your basis is what you paid, plus the cost of any improvements. For depreciation purposes you must subtract the value of the land since land is never depreciated. You then divide the remaining basis by 27.5 to arrive at your annual depreciation amount. It's not too late to correct last year's return. File an amended return on Form 1040X to correct prior year returns. You must be doing something wrong with the software. Your basis is what you paid, plus the cost of any improvements. For depreciation purposes you must subtract the value of the land since land is never depreciated. You then divide the remaining basis by 27.5 to arrive at your annual depreciation amount.

It’s not too late to correct last year’s return. File an amended return on Form 1040X to correct prior year returns.

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