F4562 - rental property change in use

[econerly]

Hi again,

You were so helpful on my previous question, I thought I'd throw these over to you as well (background refresher: dual citizen living in Canada with Canadian spouse, doing "streamlined" US tax filing for the first time 2010-2012). I'm completing form 4562, and have two questions:

1) We purchased our first rental property (in Canada) in April 2005. It is a duplex, and we lived in one half and rented out the other. In July 2006, we moved out and rented both apartments. How do I calculate the depreciation when the percent of use changed?

2) Our second rental property was purchased in February 2010, and we had to complete extensive renovations in order to put it in use. We concentrated on one apartment first, and put it in service in April 2010, and then proceeded with the renovations of the second apartment, putting it in service in July 2010. Other renovations to a commercial portion of the building took place in 2009, but it has not been put into service. How do I capture the change in basis each time we renovate?

Thanks again!

Liz

[ND]

See Pub 527 www.irs.gov

[econerly]

Thanks - I'll depreciate each portion of the building based on when it was put in service.
One more question, though. From what I've read I need to use ADS (40 year) for my Canadian rental. What about things like appliances that I've purchased after putting the unit in service? Would these also be 40 year depreciations since they're foreign?

[econerly]

Clarification: looking for depreciation methods for appliances, fixtures and furnishings used in Canadian rental property for US tax purposes

[lipid_4]

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