# UK Property Tax Depreciation Question



## Geobots (12 d ago)

Hi,

I have a question about depreciation of a property in the UK when filling out a US tax return. Last year I had an accountant to my US taxes and she calculated the depreciation of my UK property that I rent out using the straight line method. I want to do my own return this year and I was wondering if the depreciation value stays the same or do I have to recalculate using the current exchange rate?

Thanks.


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## Stevesolar (Dec 21, 2012)

Hi,
Thats a really strange question - properties don’t traditionally depreciate like cars, office computers, photocopiers etc. - in fact they often go up in value over time!
I have never seen this on a UK tax return - only allowable expenses for maintenance, decoration, insurance etc.
Cheers
Steve


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## Geobots (12 d ago)

Stevesolar said:


> Hi,
> Thats a really strange question - properties don’t traditionally depreciate like cars, office computers, photocopiers etc. - in fact they often go up in value over time!
> I have never seen this on a UK tax return - only allowable expenses for maintenance, decoration, insurance etc.
> Cheers
> Steve


 It's allowable for US taxes which is why I am asking. Thanks.


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## Moulard (Feb 3, 2017)

To answer Steve's implied question, In the US you cannot depreciate land, but you can depreciate the buildings and other assets built on the land if they are used to generate income.

Geobots..

For your US tax return your functional currency is the USD so yes, you will need to use current exchange rates to calculate the value and depreciation amounts.

Pub 946 describes how to depreciate property.






Publication 946 (2021), How To Depreciate Property | Internal Revenue Service







www.irs.gov





Pub 527 will also be helpful.. it covers residential rental property






Publication 527 (2020), Residential Rental Property | Internal Revenue Service







www.irs.gov


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