Depreciation FAQs

What is depreciation? Depreciation is a tax benefit that you get from owning rental property. I look at it as an incentive set up by the government to encourage real estate investors to buy property and rent it out. When you buy rental property, I think of the government telling you that the property itself will “wear out” over time and that they are reducing your income by the amount that they think the property is wearing out over time. This then reduces the amount of income tax you are paying so that you have money that you can use … Read more