Question about landlord accounting
Anyhow, my issue is that I know most people suggest depreciating capital invested and house value (Property value - land value) at rates of 20%/year and 4%/year respectively.
My issue is that if I depreciated both this year because the house was not rented 20% of the time and there were quite a few startup costs (and Edmonton property taxes are really, really high) I'd actually end up with a loss which really isn't of much use. Instead I think it probably makes more sense to start the depreciation next year. Is that technically allowed?
Thanks in advance.