I reviewed my tax returns and noticed the depreciation changed every year
Depreciation = Home Building value (not land) / 27.5 years. This must be constant. However, if they account current property value reported by county (for property tax purposes), this can vary every year.
I do not know why such small changes in every year. I will be asking the same to my CPA.
However, do you see similar changes in your tax filings or is it constant? Or how do you evaluate depreciation every year for rental property?
I have got the details from my CPA. Whatever I see includes depreciation of home and other improvements. Home is Straight line 27.5 methods while other improvements such as Refrigerator, Washer, Dryer…etc goes through different depreciation methods. What I see is overall Depreciation, not individual depreciation.
I don’t think that’s the right answer. You can’t take into account depreciation of appliances in your tax return.
There is a small difference because in your property tax, the structural value of the house changes every year. This accounts for the yearly differences because depreciation is based on the structural value of the house.