[Jerry]

Jerry

Not sure if this is the right place to post this, but here’s the question:

Can one depreciate an investment house if he doesn’t own it but:

1. Has a long term lease, and if so, how long?

2. Has an option, and if so, how long must the option be?

Thanks

Larry

[Jackie Lange]

Jackie Lange

needs to be a 30 year lease or option… I believe that is the right answer.

I will find out for sure and let you know

[DON WEDE]

DON WEDE

Jack Miller did say if there is a lease or option for 30 years or more that one can depreciate the house. He also says that if enought of the badges of ownership are the responibility of the lessee/Optionee such as paying the taxes and paying the insurance that also is encough to claim depreciation.

Don Wede

[Jackie Lange]

Jackie Lange

You do need to have the badges of ownership, like paying taxes, insurance, etc.. and not just the 30 year time frame.

Confirmed that it does need to be at least a 30 year lease.

If you only have a 30 year option, you cannot depreciate unless you also have right of possession (ie lease) and can show that you are paying taxes, insurance, maintenance, etc.

also need to make sure the owner is not also depreciating.

[Jerry]

Jerry

Jackie and Don,

Thanks, that’s kinda what I remember, but needed confirmation.

Larry