The Real Estate Encyclopedia
What Is Depreciation?
Category - Home Ownership Questions - General Home Ownership FAQ's

Depreciation is a form of tax deduction.  It allows an investor to recover the cost of an income-producing property used for business.  The cost of the property may be depreciated or deducted over an particular period.  Land cannot be depreciated, only the improvements of it can be depreciated.  At this time, only the straight-line depreciation method is used, meaning depreciation taken periodically in equal amounts. 


Investors might be able to deduct other losses from real estate investments but, because of the complexity of these tax laws, professional advice is highly recommended. 

Home Ownership Questions - Home Insurance FAQ's
Home Ownership Questions - General Home Ownership FAQ's
Real Estate Information Sources - General Real Estate Information
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