{"id":40348,"date":"2026-01-21T16:51:38","date_gmt":"2026-01-21T16:51:38","guid":{"rendered":"https:\/\/financialrush.com\/?p=40348"},"modified":"2026-01-21T16:51:38","modified_gmt":"2026-01-21T16:51:38","slug":"trump-floats-idea-to-change-home-depreciation-rules","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=40348","title":{"rendered":"Trump floats idea to change home depreciation rules"},"content":{"rendered":"

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U.S. President Donald Trump speaks during the 56th annual World Economic Forum (WEF), in Davos, Switzerland, January 21, 2026. <\/p>\n

Jonathan Ernst | Reuters<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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President Donald Trump<\/a> on Wednesday floated the idea of allowing depreciation \u2014 a yearly income tax deduction<\/a> to recover certain property costs over a set period of time \u2014 for personal residences. \u00a0<\/p>\n

\u201cThe crazy thing is a person can\u2019t get depreciation on a house, but when a corporation buys it, they get depreciation,\u201d Trump said during an address at the World Economic Forum in Davos, Switzerland. \u201cOkay, here\u2019s something we\u2019re gonna have to think about.\u201d <\/p>\n

However, it\u2019s unclear how that idea might come to fruition, and whether the proposal has Congressional support amid other legislative priorities. <\/p>\n<\/div>\n

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Read more CNBC personal finance coverage<\/h2>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

How depreciation deduction works<\/h2>\n
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Under current law, depreciation is permitted<\/a> for business or income-producing rental property, but generally not for primary residences, with exceptions for business use<\/a>. <\/p>\n

The depreciation deduction is based on the property\u2019s \u201cbasis,\u201d or upfront purchase price plus improvements, and when it was \u201cplaced in service.\u201d The annual tax break also depends on the accounting method<\/a> used, which outlines how many years the owner has to recover the cost basis. <\/p>\n

If the property is later sold at a profit, the IRS recoups some of the deduction claimed, known as \u201cdepreciation recapture<\/a>.\u201d <\/p>\n<\/div>\n

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Trump\u2019s comments follow other housing affordability<\/a> efforts, including an executive order<\/a> signed Tuesday to ban large institutional investors from buying single-family homes<\/a>.<\/p>\n

The cost of living<\/a> has become a key theme among policymakers as many Americans struggle to pay for housing, health care, food and other living expenses. Both parties are focused on household economic issues as Republicans seek to defend a razor-thin House majority during a mid-term election year.\u00a0<\/p>\n<\/div>\n

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