Two investors buy a house for use as a rental property. Their accountant tells them they can deduct depreciation on 80% of the $76,000 value over 27 1/2 years. How much can they deduct in the third year of ownership?

Question

Quizplus · Accepted Answer

76,000 × .80 = 60,800 (the depreciable base);using straight-line depreciation, the amount of depreciation each year = 60,800 / 27.5 = 2,210.91 (rounded to 2,211).

Two Investors Buy a House for Use as a Rental