Tax & Depreciation

Deductions, depreciation, and keeping the IRS happy.

6 terms

A tax deduction for the gradual wear of your rental property — 27.5 years for residential.

An engineering study that reclassifies building components for faster depreciation.

First-year additional depreciation on qualifying assets — phasing down annually.

When you sell, the IRS taxes back the depreciation you claimed — at 25%.

Elect to expense qualifying assets immediately instead of depreciating over time.

Sell one investment property and buy another to defer all capital gains taxes.

Educational content only. Consult a CPA or attorney for advice specific to your situation.