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Is there any condition to qualify to be able to use rental property depreciation in tax returns?

Forum|Forum|6 years ago
June 1, 2019
5 replies
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Like I need to manage rentals full time

TurboTax Business Windows

Best answer by TaxGuyBill

No, there aren't restrictions to depreciate a rental property (assuming it is a rental property for more than one year).

In some circumstances, being able to deduct a loss could be limited, but any unallowed losses would be carried forward to future years (or until it is sold) until they can be used.

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SweetieJean

You are asking from TT Business, which is used to file C Corp, S Corp and Partnership returns. Which entity actually owns the rentals?

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aroraanishAuthor

Property is in name of our trust. I have another business that I run as sole proprietorship butRentalproperty is filled as self in turbotax

Critter

Is the trust revocable or irrevocable ?

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aroraanishAuthor

It is revocable trust. How can I check Turbotax did the right things to depreciate the property for my situation ?

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TaxGuyBillAnswer

No, there aren't restrictions to depreciate a rental property (assuming it is a rental property for more than one year).

In some circumstances, being able to deduct a loss could be limited, but any unallowed losses would be carried forward to future years (or until it is sold) until they can be used.

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TaxGuyBill

Let me add one more "restriction": It does need to be a for-profit rental. You can't be renting it to friends or family members at below market rates.