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It lowers your taxable income and therefore lowers your taxes.

You are going to have to pay taxes on all depreciation "allowed or allowable" when you sell the property, so you might as well take advantage of it.

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Q: What are the advantages of claiming depreciation on rental property?
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Related questions

What is the Depreciation of a replacement air conditioning unit on rental property?

If the rental property is residential rental property, depreciate over 27.5 years. If this is non-residential rental property, depreciate over 39 years.


Do you have to take depreciation on a rental property?

No, you are not required to depreciate rental property. Sometimes, when a person knows they aren't going to keep the property but a year or two, it may not be to their advantage to depreciate the property as they will have to recapture the depreciation upon selling it. Depreciation is a deduction that you are allowed to take on your tax return in order to reduce your taxable income from this source, but it is not required.


Can you claim plumbing repair expenses on your taxes on a rental property?

Yes. You claim income that you receive in addition to expenses like repairs, insurance, property taxes, depreciation, etc. This is the case with me assuming that you are the owner of property that you rent to others and not rental property where you are the tenant.


What documents are needed to file a tax return if you own a rental property?

Rental real estate income and losses are entered on line 17 of Form 1040 for 2009. The figure that you enter on that line comes from Form 1040 Schedule E (Supplemental Income and Loss). Generally, your biggest expense for rental property is depreciation. So you'll be attaching Schedule Eand Form 4562 (Depreciation and Amortization) to your Form 1040.


What is the depreciation life of gutters on residential rental?

Striaghtline Method-15 years, if a residential rental.


What are the advantages of home rental over buying a home?

The are many advantages of home rental over buying a home. For example, one does not have to pay a property tax and one can live in home even if they cannot afford to buy a home.


Can one take bonus depreciation on assets in rental unit?

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What would I say my profession was if I owned apartment complexes?

landlordowner of rental propertylandlordowner of rental propertylandlordowner of rental propertylandlordowner of rental property


If I change my primary residence to a rental for any period and then sell it at a loss can I deduct the loss?

You will never be able to take a loss for the decrease in value during the time it was a personal use property. At best, you'll be able to take a loss for any further decrease in value after you convert it to a rental property. It is very important that you get an appraisal at the time you convert it. If you sell it for a loss, your basis for determining a loss will be the lesser of the following two numbers: 1) The FMV of the property on day it was converted to rental use minus depreciation allowed or allowable. 2) The original adjusted basis of the property minus depreciation allowed or allowable. On the other hand, your basis for determining a gain will be the original adjusted basis minus depreciation allowed or allowable. If you have a gain use the loss basis and a loss using the gain basis, then your gain is considered to be zero.


Where can one get rental property loans?

Many people are considering taking advantage of the current economy and get rental property loans. One can get rental property loans from one's local bank.


Can you get refinanced if the property is rental property?

It is possible to get refinanced for a rental property. The type of refinance would be called non-owner occupied real estate. Rates are often higher for rental property because they are not your primary residence.


What is the depreciation life on a septic tank on residential rental?

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