Posted by David Krulac on June 07, 2009 at 08:52:04:
In Reply to: RE Licence Textbook is WRONG, I'M RIGHT! posted by investorapprentice on June 07, 2009 at 08:34:23:
Presumably this house is residential and not commercial and not your personal or vacation residence, then the depreciation is 27.5 years, straightline. It can't be depreciated 5% per year, as that would indicate a 20 year depreciaiton schedule.
If the question is not real but theory then the 20 year schedule might be in the problem, though has nothing to do with IRS reality. If depreciated 5% per year for 7 years then the depreciation taken is 35% and $91,000 represents 65% of the original depreciable value of the house or $140,000.
Depreciation is not compunded and is the same amount every year presuming that no new depreciable value is added to the asset.
It like "My Couusin Vinny" court room scene, its a trick question because the depreciaiton is 27.5 years for residential not 20 years.
- Re: RE Licence Textbook is WRONG, I'M RIGHT! michaela-CA 09:04:11 06/07/09 (1)
- Re: RE Licence Textbook is WRONG, I'M RIGHT! AlexCO 15:03:12 06/07/09 (0)