I have been trying to wrap my mind around this concept. I'm not sure I fully understand. I have seen it in Diane's, Vollucci's, and Berges' books.
If you have a rental property, commercial or residential, your allowed to claim a deduction on your taxes for a building deterioration even if the buildings value increases? 3.64% for rental housing under 27.5 years and 2.56% for commercial buildings under 39 years? (I got those numbers out of Barron's Real Estate Dictionary, I'm not sure how accurate they are.) No deduction for land.
How are fixed up properties affected by this?
Are there no deduction after the building has matured past given ages?
If you have a rental property, commercial or residential, your allowed to claim a deduction on your taxes for a building deterioration even if the buildings value increases? 3.64% for rental housing under 27.5 years and 2.56% for commercial buildings under 39 years? (I got those numbers out of Barron's Real Estate Dictionary, I'm not sure how accurate they are.) No deduction for land.
How are fixed up properties affected by this?
Are there no deduction after the building has matured past given ages?
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