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Claiming Depreciation

rynosaurus profile photo
  • Friday, August 01, 2003 @ 09:58 AM EDT
  • 7 Comments

am going into the business of Lease-Options and was reading this definition of someone that can claim depreciaton on they're property. It says in the paragraph below "if the lease provides that the lessee is to maintain the property and return to you the same property"(they can't claim depreciaton) but if it is a lease purchase option it can go either way... the tenant buyer can lease and buy or can back out... So can i still claim depreciation?

"If you lease property to someone, you generally can depreciate its cost even if the lessee (the person leasing from you) has agreed to preserve, replace, renew, and maintain the property. However, if the lease provides that the lessee is to maintain the property and return to you the same property or its equivalent in value at the expiration of the lease in as good condition and value as when leased, you cannot depreciate the cost of the property"

Comments(7)

  • no photo
    2000rock24th July, 2003

    rynosaurus,

    I buy and then L/O all my REI....and I claim all the depreciation for myself...

    If I had my way...I would only write off Interest,Taxes&Insurance... I would NOT depreciate, but the IRS ...RequiresMeTo!

    I HAVE BEEN AUDITED 8 TIMES and have NEVER had to pay 1cent more in Taxes!

    ...and The lessee has ALL the responsibilities of HomeOwnership


    ....as always,


    GoodInvesting, Rocky

  • no photo
    Tonyy26th July, 2003

    2000rock,

    Quote:I HAVE BEEN AUDITED 8 TIMES

    Who did you P O at the IRS
    [addsig]

  • no photo
    2000rock29th July, 2003

    Tonyy,

    NOBODY....

    ....but I always take it ToTheLimit!

    ...and they pick it up!

    I guess I am one of the few that LovesTheAudit...

    TO MAKE FOOLS OF THEM!!!

    plus...I keep impeccable RECORDS!

    It makes me feel GREAT to see their faces when I answer ALL their questions with documentation.


    ....as always,

    GoodInvesting, Rocky

  • no photo
    patricc6830th July, 2003

    THATTTTTTTT is AWSOMEEEEE.......

  • no photo
    investorB30th July, 2003

    Rocky mentioned something important: "Impeccable records."

    I'm curious as to what details others on this list keep on record, and in what format.

    Best,
    Brian

  • no photo
    2000rock31st July, 2003

    investorB,
    Brian,

    I keep Hard and Soft copies...

    Hard...the actual receipts plus canceled checks...

    Soft...computer records...


    ....as always,


    GoodInvesting, Rocky

  • no photo
    investorB1st August, 2003

    Thanks, Rocky.

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