I’m a first time homeowner and do my own taxes. I heard that you can use your house/property depreciation against your taxable income. I tried searching but with no luck. I live in California and was wondering what’s the rate and how to go about doing this deduction when tax time comes. Thanks!
Do you own investment property? Or just your private residence?
Keith
I know you can use mortgage interest as a deduction for your primary residence. You can get up to $500,000 of a non-taxable capital gain from your primary residence as well. I have never heard about taking depreation on your home.
Good Luck
You can get up to $500K of tax free capital gains for a married couple and $250K for a single…
You can depreciate income properties – that’s why I asked the question.
Keith
It’s a private residence. It’s just something I was curious about since I read something about it in the book. I might have mistaken it for investment properties.
If your total itemized deductions exceed the “Standard Deduction” for your filing status (see line 40 of Form 1040), you should itemize your deductions…if you do, you can declare any ionterest you pay your lender and any real estate taxes that you’ve paid during the tax year, as well as any points that you paid during the tax year (in this case, 2006) if you bought the property.
Filing this form will also allow you to declare any California state income taxes that you paid and declare any contributions to charity that you made…
You CANNOT depreciate your home!
If you have no idea what I’m saying, or what you’re doing, seek the advice of a tax professional.
Keith
I did not think you were asking about income property from your question. And yes you can deppreciate investment property. I can’t remember the the amount of years but as I recall it’s 39yrs and 27.5yrs straight line dep.
It’s 27-1/2 years but he’s not talking about an investment property, he’s talking about his home…
Keith
I understand what you’re saying. I just needed a clarification on what I had in mind.
My fault I miss read the name on the post…=[
NP…
Keith
Did this clear it up or do you need more/better instructions?
Keith
That cleared it up, absolutely. No further explanations, thank you!
Good deal…
Keith