What is a fair yearly depreciation amount ?

What is the yearly depreciation amount of a 3 family rental property in Queens , New York with Fair Market Value $870,000 . It is an investment property that I plan to sell in 5 years.Is there a formula to calculate it? Does year built or zoning make a difference ? Building built in 1922. R6 Zoning.

There are irs rules for depreciation, you must pick one and go with it.

You can't depreciate land. You must depreciate the building slower than other things in it, so ideally you purchased the building for one number plus the things in it for another (light fixtures, carpet, other stuff that can be taken out and is not opart of the building, be very liberal). Problem is you can't just say that it has to be in the purchase contract, so it is likely too late for you there.

There is something called a 179 deduction you can apply to all the stuff, that makes you be able to take it all at once, up to a limit, and if not then you can depreciate it faster anyway.

The bulding must be depreciated over 30 years. Straight line is 1/30th of it each year.... BORING! What you want to do is MACRS which is more in the begining and less later. Its harder to calculate but well worth it.

Once you pick one and turn in your taxes you are stuck with that method as long as you own the property as far as I know, so choose wisely.

Pay a CPA the first year and make them teach you what they did. The extra hour will mean you can do it yourself in the future if you want.

Good luck, read all about it in the IRS publication.