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Tax question.... Depreciation of foreign rental property

Tax question.... Depreciation of foreign rental property

Old Aug 25th 2014, 5:58 pm
  #1  
Zez
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Default Tax question.... Depreciation of foreign rental property

Tax question! Yes I know we're late, but we have an extension!

We own and rent out our property in the UK.

My understanding is that I report this income on schedule e. I'm now looking at depreciation on this. I know it has to be depreciated over 40 years because it's overseas and that I can only depreciate the buildings, not land. How to I work out how much of the purchase price relates to land and how much to buildings?

Have failed in my google search

Thanks

Sarah
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Old Aug 25th 2014, 6:05 pm
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Default Re: Tax question.... Depreciation of foreign rental property

Oooh just found an old thread on here! Deduct 20% for land cost? Thanks
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Old Aug 25th 2014, 7:43 pm
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Default Re: Tax question.... Depreciation of foreign rental property

Originally Posted by Zez View Post
Oooh just found an old thread on here! Deduct 20% for land cost? Thanks
20% is a good starting point, but can/should be adjusted if there are other factors in play. For example if the land has redevelopment potential (unlikely in the UK given the rigidity of planning permission) the percentage for the land might be higher, or if the house is especially grandiose but is in an undesirable part of town, then the percentage for land might be lower.
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Old Aug 26th 2014, 12:41 am
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Default Re: Tax question.... Depreciation of foreign rental property

Thant's really. Helpful. It's a normal house in a small market town. Big ish garden, but certainly couldn't sell off a bit and build on it or anything.

The other thread (and your contributions on it) was really helpful. As was that. Thanks. Don't know what I'd do without this forum!
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Old Aug 26th 2014, 10:31 am
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Default Re: Tax question.... Depreciation of foreign rental property

Originally Posted by Zez View Post
Thant's really. Helpful. It's a normal house in a small market town. Big ish garden, but certainly couldn't sell off a bit and build on it or anything.

The other thread (and your contributions on it) was really helpful. As was that. Thanks. ....
You're welcome. )
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