Tax tips…
Tax tips…
Here is something most new real estate investor’s over look when it comes to taxes – deprecation!
I always create a real estate depreciation table for each property I own that show the value of 3 things.
1. Personal property inside the house. This is the best depreciation because you are aloud to deduct the value of all the items inside the house on a fast 5 year table.
2. Landscape improvements outside the house. This is good depreciation because you can deduct the value of all landscape, watering systems and cement work outside the house on a good 15 year table.
3. The value of the house. You are not allowed to depreciate the value of the land, so you must remove that amount from the purchase price of the real estate before you create your depreciation table. The house value can be depreciated on a 27.5 year table.
These kind of deductions put real money back in your pocket with tax saving that only real estate can offer.
