eli573

How does one accurately establish the value of a UK property for the purposes of depreciation, when calculating net foreign rental income? Until now I had thought the depreciation was based on the purchase price. After further reading, I now to understand we can only depreciate the value of the building itself?

I would like to know how one depreciates the value of
i) a leasehold flat (condo) within an appartment building.
ii) a freehold property (a terraced house)

thanks!

Bink

Honestly, this is why I use a CPA. If you have multiple rental properties in the UK it's probably worth the fee to have someone professionally advise you the best way to file your return.

Mr Weeze

KPMG advised me to look at an estimate to rebuild from a buildings insurance policy.

sergeyvo

If I'm correct, depreciation is taken into account for overseas houses not older than 27 (40?) years. That's what I read and H&R block told me. Then IRS assume that the house is completely worn (true for US cardboard homes ). Not sure it works for victorian properties