Basics of Real Estate Syndication
What is Accelerated Depreciation
Depreciation is an important tool that can help create wealth in real estate.
It refers to the loss of an asset’s value over time.
Usually this time period is 39 years for commercial real estate.
Most real estate suffers from normal wear and tear over the years, making it less valuable as it ages.
The IRS allows commercial property owners to deduct those losses from their overall tax burden.
There are service providers who offer something called Cost Segregation.
Cost segregation is a strategy that can convert traditional depreciation into asset based depreciation.
This allows them to separate the components of the property that depreciate faster.
This can potentially accelerate the depreciation and significantly lower the investors taxable income.
Specially as we are nearing year end; now will be a good time think about tax planning!!
Other Blogs
What is Accelerated Depreciation
Depreciation is an important tool that can help create wealth in real estate.
It refers to the loss of an asset’s value over time.
Usually this time period is 39 years for commercial real estate.
Most real estate suffers from normal wear and tear over the years, making it less valuable as it ages.
The IRS allows commercial property owners to deduct those losses from their overall tax burden.
There are service providers who offer something called Cost Segregation.
Cost segregation is a strategy that can convert traditional depreciation into asset based depreciation.
This allows them to separate the components of the property that depreciate faster.
This can potentially accelerate the depreciation and significantly lower the investors taxable income.
Specially as we are nearing year end; now will be a good time think about tax planning!!
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