ilmscore | Prediction Details
"Real estate offers some of the most favorable tax breaks that our tax code has to offer because they offer something called the depreciation deduction, which says that every single year you get to depreciate the value of the building on your real estate. So let's assume that 20% of the cost, so $200,000 is the cost of the land of what you bought, and the other 80%, the $800,000 is for the actual building... Well, if it's an apartment complex, you get to deduct 1/39th of that amount. So 1/39th of $800,000 every single year over the next 39 years. That means you will get to take a deduction of right around $220,500 every year for 39 years."
By Minority Mindset | November 12, 2023 | Pending
From video
How The Wealthy Pay No Taxes (And How You Can Too) | Jaspreet Singh 00:36:14 - 00:36:54
Interpreted Prediction
Real estate investors can claim a depreciation deduction annually on the value of the building (not the land), which can be deducted from income, even if the property's market value is increasing. This deduction is spread over the asset's useful life (e.g., 39 years for commercial buildings).

Prediction Details

Topic
Real Estate Depreciation Deduction

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