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3115 residential/commercial depreciation

michele
Level 7

Have a residential rental.  That is now renting out the garage as commercial rent. The house is staying residential. I would assume that I have to complete a 3115 since it is a change. Would the garage start as a 0 in depreciation for the first year and leave the previous garage amount with the house.?

I had a commercial building  downstairs that had a loft upstairs that was rented residential. I remember looking up the regs and that one and treated it all as commercial.

 

This one will be a pain because knowing the situation I have the feeling it will al go back to residential in a couple years.

 

thx

Michele

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2 Comments 2
sjrcpa
Level 15

it's a change in use. No 3115 needed.

And as I recall for mixed use, you look at the % residential vs commercial % to determine the depreciable life. That must be what you looked up before.

 

 

 

 

 

 

The more I know, the more I don't know.
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TaxGuyBill
Level 15

Is it all one building, or is the garage a separate building?

Is the house and the garage two separate tenants?

Right before renting the garage as commercial, was it previously being used (and depreciated) as a Residential Rental?

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