I have a client from Chicago who bought a parking space. Being from Ohio I have not heard of that before. They are now renting it out. Is that something that would be depreciated? My initial thought is No, but wanted to get a second opinion.
Good question. I'll have to check on that. I assume that on the ground no depreciation. In a garage - depreciation
If its on the ground and its paved, isn't that a depreciable improvement, even though it's nickels and dimes?
Purchase of a parking space is a right of use. Nothing is actually owned. Income from renting it to someone else is miscellaneous income.
That Depends Charlotte. For some condominium complexes around here, an owner may purchase a parking space . Its expensive. There is a deed. They have to pay real estate taxes. My one client who rents hers (she doesn't drive but thought to buy it for added resale attractiveness) claims depreciation expense on it.
One way or another there shouild be a write-off on the purchase price if it wasn't an actual purchase of "land"...long-term lease or other amortization...
