Rented Rental Property Repairs and Improvements

deon · #1 (**permalink**) 10-02-2015, 08:31 PM

This is a little complicated but I will be a short as possible.
I sold a family member a mobile home and have a lien on the title until paid. The mobile home sits on property that I own but was not part of the deal. The family member received a job offer in another city and moved. To insure I would get paid I rented the property back from the family member. The rental income will be around $26,000 for the year and the rent is less than half that. To get that much rent I had to do about $11,000 in repairs and improvements, mostly improvements to the home. Since the home is not mine do I have to deprecate over 5-27 years?

Work done: Insulation in attic, HVAC repair, new flooring, new tub, paint, lighting, some windows, appliances, and furniture.

Wnhough · #2 (**permalink**) 10-03-2015, 05:47 PM

Quote:

Originally Posted by deon

This is a little complicated but I will be a short as possible.
I sold a family member a mobile home and have a lien on the title until paid. The mobile home sits on property that I own but was not part of the deal. The family member received a job offer in another city and moved. To insure I would get paid I rented the property back from the family member. The rental income will be around $26,000 for the year and the rent is less than half that. To get that much rent I had to do about $11,000 in repairs and improvements, mostly improvements to the home. Since the home is not mine do I have to deprecate over 5-27 years?

Work done: Insulation in attic, HVAC repair, new flooring, new tub, paint, lighting, some windows, appliances, and furniture.

UNLESS you own the rental pty as a legal owner, you can not depreciate it; the owner of the rental pty can depreciate aslongas the pty is used as rental purposes.