I would like to wish all the landlords (big or small) here a prosperous 2017. Wish you the best of luck in finding tenants. And thank you for answering my questions.
I did not have much rental income last year. I had the property in July last year and then took a few months doing repairs and to find a tenant. There was virtually no net income after expenses.
1. If I don't take the depreciation (27 years period depreciation) when I file Schedule E, do I lose it?
2. If I don't take the depreciation, I will have a higher cost basis when I sell the place. Is this the only benefit? I was forced to be a landlord, so selling the place is quite likely.
3. Does taking (or not taking) the depreciation have to be consistent? i.e. if I don't take it for year 2016, then I cannot take it for year 2017? Alternatively, the question is: if I start to take it for year 2016, then I must take it for year 2017?
Thank you much. Hope the answers benefit all landlords and landladys.