Under which condition can a single-family residence owner depreciate the property for tax purposes?

A single-family residence owner can depreciate the property for tax purposes if the property is a rental. The U.S. tax code allows property owners to depreciate the cost of a rental property over a specified period, which for residential properties is 27.5 years. This tax benefit is designed to provide relief for the wear and tear on the property, as well as to account for the gradual decline in value due to use over time.

In the context of owner-occupied properties, depreciation is not applicable because these properties do not generate rental income. Therefore, the owner cannot write off the depreciation against income taxes in the same way that a landlord can for a rental property.

For properties held for a specific duration, such as 27.5 years, this is related to the period over which depreciation is calculated rather than a condition for depreciation to begin. Additionally, while the sale of the property might affect tax implications, it does not impact the ability to depreciate the property while it is held as a rental. Hence, the critical condition that allows for depreciation is when the property is used as a rental.