3 ms·
(Small time landlord here) homes are absolutely depreciating assets. On your taxes you can write off the whole value of your home over 30 years due to depreciat
by turdprincess 4y ago
(Small time landlord here) homes are absolutely depreciating assets. On your taxes you can write off the whole value of your home over 30 years due to depreciation - the assumption is that your home will only last your that long and will essentially be “rebuilt” through all the maintenance expenses. Your home is just a pile of scrap wood and nails which rots and depreciated just like your car.
What does not depreciate however is that pesky patch of dirt under your home. That goes up and up in value because folks want to own a piece of this great blue ball and the value on that desire only goes up as population and standard of living increases.
- refurb 4y agoYou can get a tax deduction for depreciation but it’s clawed-backed when you sell at market rate. If you take $100,000 depreciation and sell, the $100,000 is knocked off the basis when calculating capita gains.
- thrwy_918 4y ago> What does not depreciate however is that pesky patch of dirt under your home. That goes up and up in value because folks want to own a piece of this great blue ball and the value on that desire only goes up as population and standard of living increases. ...which is why a land value tax is a great idea https://en.wikipedia.org/wiki/Land_value_tax https://en.wikipedia.org/wiki/Land_value_tax