Trump Floats Personal Residence Depreciation—A Big Move That Can Unlock Savings For Investors
President Trump floated the idea of allowing homeowners to claim depreciation on their personal residences, potentially offering significant tax savings. If enacted, this could be a double benefit for real estate investors who also own their homes. However, the proposal is still in the early stages, with many details needing to be worked out by Congress.
Key Insights
- •The president suggested allowing homeowners to claim depreciation on their personal residences, similar to how it works for investment properties.
- •Depreciation on a rental portion of a home is calculated by multiplying the adjusted basis of the property by the rental use percentage.
Action Items
- ✓If you rent part of your home, consult with an accountant specializing in short-term rentals to properly calculate and claim depreciation.Effort: mediumImpact: medium
Common Mistakes
- ⚠Renting individual rooms and sharing living spaces complicates depreciation calculations, potentially leading to errors if not handled correctly.
Related Videos
More from Regulations & Compliance
Lawrence, Kansas, officials loosened restrictions on rental properties in anticipation of increased demand during the World Cup. This strategic move aims to help residents capitalize on the surge in global demand. Hosts are encouraged to understand and leverage the regulatory changes to maximize their earning potential.
Evanston, IL, aldermen will vote on proposed vacation rental limits on Monday. This crucial decision could significantly impact local hosts and the availability of short-term rentals within the city. Hosts need to stay informed to adapt to possible new regulations.
The BV Trustees are considering forming a Short Term Rental Committee and will conduct the first reading of an Electric Preferred Amendment. This signals potential regulatory changes for short-term rentals in the area. Hosts should monitor these developments, as new regulations could impact their operations.