We’ve mentioned several times the power of depreciation, and you might have already heard of depreciation, so how does it work with real estate and your taxes?
Depreciation in real estate is a way to account for the wear and tear on buildings or properties over time. Just like cars lose value as they age, so do buildings. Even if a building is still in good shape, the IRS considers it less valuable as it gets older (even though, in reality, it’s probably appreciating in value).
Depreciation allows property owners to deduct a portion of the property’s value from their taxes each year. This deduction helps offset the costs of owning and maintaining the property. However, it’s important to follow specific rules and guidelines set by the government to ensure accurate depreciation calculations.
Overall, depreciation is a useful tool for property owners to manage their tax liabilities and expenses related to property ownership. And that’s why we focus on leveraging depreciation in our Class B shares in our National Diversified Fund (NDF).
To explore if you could leverage depreciation with our NDF, go to https://irontoncapital.com/myreview to choose your best time for your free portfolio review so you can get all the information to take to your financial advisors.
