Which taxpayer has property that is depreciable?

Question

Connie owns a townhouse and rents it out to tenants.
Enzo purchased a lot of land that he held for investment.
Jack purchased a new camera on March 12, 2023, for his photography business. Later, he had buyer's remorse and sold the camera on October 11, 2023.
Melody purchased a new refrigerator for personal use in her home

Answer 1

In the given scenarios, the taxpayer with property that is depreciable is Connie.

Here’s a breakdown of the reasons for each:

1. Connie owning a townhouse and renting it out: The townhouse is considered rental property, which is depreciable over time. Connie can deduct depreciation on her tax return.

2. Enzo purchasing a lot of land held for investment: Land itself is not depreciable, even though it may increase in value over time.

3. Jack purchasing a new camera for his photography business: Although the camera is used for business purposes, since he sold it within the same year, it may not have been eligible for depreciation based on the short holding period. However, typically, capital assets used in a business can also be depreciated.

4. Melody purchasing a refrigerator for personal use: Personal-use property is not depreciable.

In conclusion, Connie’s townhouse qualifies as depreciable property.