How to figure depreciation on rental property?

Question

OK can someone explain it to me like I'm 10. I have a condo that I rent out, and I'm supposed to figure depreciation on it? For my taxes. I looked it up here on answers, and someone had a link to the IRS page that detailed how to do it. When I looked at it, and tried to figure it out, I wasn't sure I was reading english. :) I've only had the property for a year or so, so this is my first experience with this. Anybody that speaks 10 yr old english, can you get me through this?

Answer 1

The depreciation (difference between what you paid for the rental property and it's current worth) would be treated as an expence and this amount can be written off on your taxes.  I have attached a link to a web page that seems to explain it pretty thoroughly.

Hope this helps.

http://www.invest-2win.com/depreciation....

Answer 2

Okay this is as simple as I can make it. Follow the link below to the IRS website it should take you to Pub.946. Then go to page 73 table 6.

The number you use depends on when you placed the property in service (meaning the date it was available to rent). For example this is the first year you had it for rent and it was available to rent in June...you would use the first line of the chart in the sixth column. That will give you the percentage. You multiply that by your basis in the property (cost + improvements) the answer is the amount of depreciation for that year.

Hope this helps.

http://www.irs.gov/pub/irs-pdf/p946.pdf

Answer 3

I looked it up.  I found it on a source.  Alright?  Go check it.  Thank you.  

Answer 4

http://easyrentaltools.com/tutorials/dep...

Hope it helps.  Here's a step by step calculator...

Answer 5

If you are 10 yrs old then you must by law have an adult overseeing this rental property and the taxes for you. I know you have parents why not ask them about this. I have rental property also but i have never been ask for a depreciation of it for my taxes because for most part the property doesn't depreciate at all they usually gain value with time not lose.