Periodic wearing away of single family rental investment property or other property type over the property’s economic life. The I.R.S. provides for a method for investors and business owners to take a tax deduction on the amount of a property’s depreciation. Investors may be allowed a deduction on income tax return for the wearing away and expensing over time of property or assets – like investment properties. A depreciable asset is a capital expenditure in depreciable property used in a trade or business or held for the production of income and has a definite useful life of more than one year. Non-depreciable property includes vacant land. Recent tax regulation changes has affected how personal property may be depreciated.
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