Kent is looking at buying a building that is 30 years old and wants to know about how to take the depreciation deduction on it. Here is his specific question.

Q: When calculating depreciation over 27.5 years, is that from the date of construction or purchase? For example, if I were to buy a 30 year old house, is depreciation no longer allowed?

A: Good news for you, Kent! You can take a depreciation deduction on any building regardless of the age. You start taking the deduction as soon as you place the building in service. That means that as soon as you start leasing it or using it in your business, you can start taking the depreciation deduction. And, if you do a cost segregation, you can typically get a lot more depreciation earlier. See our course on the Magic of Depreciation at http://www.provisionwealth.com./products.

Warmest regards,

Tom