For all of you tax-day procrastinators out there… Let’s talk about rental property depreciation for tax purposes!
We have covered mileage reimbursement tax treatment in an earlier post. Now, let’s get down to more real estate-centric stuff.
Owning rental property can be a good source of income, but it is income and must be reported as such on your taxes. However, you are allowed to deduct expenses incurred in renting the property from your income. One of these expenses is depreciation. Depreciation is wonderful because it is a ‘non-cash’ expense, meaning that no money actually leaves your pocket but you can still record it as an expense.