ZuoTi.Pro
Question

what is the recovery period and deprfciation method of as residential rental propertylocated in a foreign...

what is the recovery period and deprfciation method of as residential rental propertylocated in a foreign country which was placed in service after ZDecember 31, 2017
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1
  • The general rule for all foreign residential property is depreciated or recovered over 30 years.
  • Depreciation method used for such foreign residential property is that the value of property can be depreciated when the property is used for rental purpose and when property sold the accumulated depreciation will deduct from the basis.
  • Only the value of residential property can be depreciated not the value of land.
  • Any residential rental property placed in service after 1986 is depreciated using the Modified Accelerated Cost Recovery System (MACRS), an accounting technique that spreads costs (and depreciation deductions) over 30 years. This is the amount of time the IRS considers to be the “useful life” of a rental property.
0 0
Add a comment
Know the answer?
Add Answer to:
what is the recovery period and deprfciation method of as residential rental propertylocated in a foreign...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • which of the following statements about residential rental Property ore True? the property may be depreciated...

    which of the following statements about residential rental Property ore True? the property may be depreciated using the Ar Alternative Depreciation Sys. (Ads) for a period of 27/2 years only by electing to in the first your property is placed into service. B.- (ADS) for a perival of 30 years only be electing to in the first year the properly is placed into service. General Depeciation Sys. (GDS) for a period of 30 yrs. Dor (GOs) for a period of...

  • 7. Jenny constructed a building for use as a residential rental property. The cost of the...

    7. Jenny constructed a building for use as a residential rental property. The cost of the building was $82,488, and it was placed in service on August 1, 1994. The building has a 27.5-year MACRS life. What is the amount of depreciation on the building for 2018 for tax purposes? a. $2,250 b. $3,000 c. $6,000 d. $6,547 e. None of the above ANSWER: Please explain

  • A taxpayer places a $1,050,000 5-year recovery period asset in service in 2019. This is the...

    A taxpayer places a $1,050,000 5-year recovery period asset in service in 2019. This is the only asset placed in service in 2019. Assuming half-year convention, an election to expense under Section 179, and no income limitation, what is the amount of total cost recovery deduction (no bonus depreciation)? a. $1,000,000 b. $200,000 c. $1,050,000 d. $1,026,000 e. $210,000 An asset (not an automobile) put in service in June 2019 has a depreciable basis of $35,000 and a recovery period...

  • Question 40 of 75. Leon sold residential rental property he had owned for three years. As...

    Question 40 of 75. Leon sold residential rental property he had owned for three years. As part of this sale, Leon realized gain on the sale of the rental house he was depreciating using regular MACRS. Which Code section describes the gain on the LAND? 。51231 。51245. O §1250. O §1254. Question 13 of 75 In January 2015, Sue purchased and placed into service a $20,000 piece of equipment for exclusive use in her business Since then, she claimed a...

  • Ranjit owns a residential rental building which he purchased for $300,000 in 2017. In that year,...

    Ranjit owns a residential rental building which he purchased for $300,000 in 2017. In that year, his rental income before CCA was $6,000. In 2018, his rental income before CCA was $12,000. Ranjit always minimizes his tax liability. Which of the following statements is correct? a) Ranjit has net rental income of nil in 2018. b) Ranjit has a net rental loss of $2,000 in 2018. c) Ranjit has net rental income of $480 in 2018. d) Ranjit has net...

  • 38. A taxpayer places a $1,050,000 5-year recovery period asset in service in 2018. This is...

    38. A taxpayer places a $1,050,000 5-year recovery period asset in service in 2018. This is the only asset placed in service in 2018. Assuming half-year convention, an election to expense under Section 179, and no income limitation, what is the amount of total cost recovery deduction (no bonus depreciation)? a. $200,000 b. $210,000 c. $1,000,000 d. $1,010,000 e. $1,050,000 ANSWER: d Please explain

  • Question 47 of 75. What is the IRS method of allocating expenses between rental use and...

    Question 47 of 75. What is the IRS method of allocating expenses between rental use and pers All expenses allocated as a percentage of rental-use days to total days owne All expenses allocated as a percentage of rental-use days to total days used Mortgage interest and casualty losses allocated as a percentage of rental-use Mortgage interest and real estate taxes allocated as percentage of rental-use c Mark for follow up Question 48 of 75. Tyler purchased and placed in service...

  • Assuming no special election, determine the asset recovery periods, methods and convention under MACRS – General...

    Assuming no special election, determine the asset recovery periods, methods and convention under MACRS – General Depreciation System (GDS) for the following assets: Asset GDS recovery period GDS method GDS convention Office Desk Photocopier Office computer Manufacturing equipment 50-unit residential apartment building Office building (in service 1/1/18) Company-owned car

  • 1. Assuming no special election, determine the asset recovery periods, methods and convention under MACRS –...

    1. Assuming no special election, determine the asset recovery periods, methods and convention under MACRS – General Depreciation System (GDS) for the following assets: Asset GDS recovery period GDS method GDS convention a. Office Desk 7 years b. Photocopier c. Office computer d. Manufacturing equipment e. 50-unit residential apartment building f. Office building (in service 1/1/18) g. Company-owned car

  • Firm ML, a noncorporate taxpayer, exchanged residential rental property plus $16,200 cash for 20 acres of...

    Firm ML, a noncorporate taxpayer, exchanged residential rental property plus $16,200 cash for 20 acres of investment land with a $250,000 FMV. ML used the straight-line method to compute depreciation on the rental property a. Assuming that ML's exchange was negotiated at arm's length, what is the FMV of the rental property? b. If the adjusted basis of the rental property is $228,750, compute ML's realized and recognized gain c. Compute ML's basis in the 20 acres of investment land...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT