Real estate question? Studying for license exam?

Question

A married couple purchases a property, which they intend to occupy as a home. The purchase price of the home is $120,000, and the value of the land (included in the purchase price) is estimated at $15,000. The amount of the depreciation deduction that this couple can claim for federal income tax purposes is:

a. $0

b. $105,000

c. $12,000

d. 3.6% of $105,000

Answer 1

You can't depreciate your personal residence, so the answer is A. $0.

Answer 2

A.

This is on a real estate exam?

Primary residences are not eligible for depreciation, only income properties.  

Answer 3

Its A, $0.  You can't depreciate property you are living in (D is the correct answer for investment property for any given year)

Answer 4

a

there is no depreciation for your homestead property.