?

I purchased a single family home which was placed in service for rental property in 2010. I did not realize the tax implications of not taking depreciation on the home. I now want to start taking and claiming depreciation (S/L) for the first time on my 2014 return. Not trying to catch up from 2010, just want to start my depreciation now accepting the fact that I will lose the first four years of depreciation. Instructions for Form 4562 state that this form must be filed if you are claiming "depreciation for property placed in service during the 2014 tax year." Since my property was placed in service in 2010 (not in 2014) do I have to file Form 4562 or does it really mean I must file this form because I am starting to claim depreciation for property that is in service during 2014?

Thank You

Jack

Q:Adjusted Basis for Investment Property (Not Rental) Asked by JLBROWN22 On Feb 06, 2011

I purchased a bank owned property (house) for the purpose of rehabbing and selling. For determining my adjusted cost basis, am I permitted to include the cost of utilities and insurance I paid during the time I owned the property. It was vacant the entire time and never put up for rent.

Thanks,

Email: JLBROWN22@YAHOO.COM