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Browsing Tag: Bonus Deprecation

Understanding Depreciation Recapture Tax for Investment Properties

One of the tax benefits of owning real estate investment property is that you get to depreciate the building each year. It’s a way the US government incentivizes investors to buy property. In a sense it’s a loan. You get to take a tax deduction now saving on your tax bill but when you go to sell the property, you’ll have to pay tax on that depreciation. You might be able to potentially avoid paying that tax or at least kicking it down the road if you do a 1031 Exchange.

Here’s an excellent 8 minute video from real estate tax advisor and CPA, Brandon Hall.

If you are a real estate investor / building owner and you’d like to learn more about cost segregation and how it might help you save a lot of money on your income taxes, please feel free to reach out to me to discuss. I also have a cost segregation page here on this blog that might be of help initially.