Tax Guru · TCC | Real Estate Education

Tax Guru

Depreciation for residential rental property is over 27.5 years and for commercial property it is over 39 years. This is a non-cash deduction, meaning it reduces taxable income without affecting cash flow. Depreciation can significantly reduce your tax liability even if your property is generating positive cash flow. For higher cost acquisitions consider a cost segregation study to accelerate depreciation (e.g., for components like appliances, carpet, etc.) and front-load your deductions.

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