ETax847 Posted March 18, 2020 Report Share Posted March 18, 2020 Client is considering buying a parking spot in his condo building to rent out. The spot is in a garage. Can this spot be depreciated? Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted March 18, 2020 Report Share Posted March 18, 2020 Sounds like the same treatment land gets. Quote Link to comment Share on other sites More sharing options...
ETax847 Posted March 18, 2020 Author Report Share Posted March 18, 2020 That's what i was thinking. Thanks for the quick reply Quote Link to comment Share on other sites More sharing options...
Roberts Posted March 18, 2020 Report Share Posted March 18, 2020 Quote Link to comment Share on other sites More sharing options...
Lee B Posted March 18, 2020 Report Share Posted March 18, 2020 It's a land improvement, of course it can be depreciated, or if you consider it to be an intangible it could be amortized. It probably depends on whether he purchased the right to park in this space or whether the spot is titled in some fashion like all the different ways a condo can be titled. 1 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted March 18, 2020 Report Share Posted March 18, 2020 6 minutes ago, cbslee said: It's a land improvement, of course it can be depreciated. What if it was just a space on a grass/dirt field? Joking aside, because it's a building, I would go with building at 27.5 years. Quote Link to comment Share on other sites More sharing options...
Max W Posted March 18, 2020 Report Share Posted March 18, 2020 Paved parking areas are 1250 property with a 15 yr depreciation. 1 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted March 18, 2020 Report Share Posted March 18, 2020 This is a garage building for a residential property. I'm sticking with 27.5 years. Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted March 18, 2020 Report Share Posted March 18, 2020 It's been interesting reading this and remembering 40ish years ago when I lived in Back Bay area of Boston. Having just moved from Switzerland, we had no car and discovered we didn't need one. Then bought a condo at Beacon and Fairfield just being converted from student apartments following conversion from a single family house. As the third buyers, we used our saved up car purchase money to buy the parking space then rented it out. I was a molecular biologist then and knew nothing about depreciation. I do know that 3 years later, about 1979, we were offered $10,000 for just the parking space! Hey SOL expired by now, right? 2 Quote Link to comment Share on other sites More sharing options...
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