Discussion:Deprecaition of condo unit in a hotel
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Discussion Forum Index --> Tax Questions --> Deprecaition of condo unit in a hotel
Howardlcpa (talk|edits) said: | 19 July 2007 |
| Dear Group,
I have a client who recently purchased a unit/room within a hotel. The hotel handles all of the management duties such as laundry, maintenance, the collection of rents, etc. These costs are deducted from the net rents my client receives. Would the unit be depreciated under MACRS using 27.5 years or 39 years? My client is not running the hotel, he just purchased a unit within it. My initial impression is to use 27.5 years, but I am not sure at this point. Thank you in advance to any and all who reply. | |
Death&Taxes (talk|edits) said: | 19 July 2007 |
| Length of average stay? | |
Howardlcpa (talk|edits) said: | 19 July 2007 |
| The length of stay varies. Daily/weekly rentals during the summer and monthly in the winter months, if rented at all. Thanks. | |
| 20 July 2007 | |
| Assuming length of stay is 7 days or week and no personal use - 39. Others may differ. | |
Death&Taxes (talk|edits) said: | 20 July 2007 |
| And it appears you are providing services, even if the hotel management performs them....they are deducting them from the rent. I agree with 39. | |
| 20 July 2007 | |
| I have a client who recently purchased a unit/room within a hotel.
When did they start doing this? Never heard of it. | |
| 20 July 2007 | |
| Commercial property ...but a unit/room within a hotel. What would one pay for a unit/room within a hotel?? | |
Bottom Line (talk|edits) said: | 21 July 2007 |
| They're doing a decent bit of this in FL. The units are running $70,000 - $150,000. They're targeting the investors that don't want the challenges of managing property. (In my opinion, the same people buy these as buy timeshares although they're entirely different animals.) | |
