The IRS only allows homeowners to depreciate the value of the building ... The chart below shows how your annualized return would look if you invested depreciation-related tax savings into a ...

Say you purchased a rental property for $200,000 ($160,000 for the building + $40,000 for the land). During eight years of ownership, you claimed $46,545 in depreciation deductions ($160,000 ÷ 27 ...

“People think old property doesn’t have deprecation, and it doesn’t on second hand plant, but it does have claims on the building,” he said. “The depreciation you claim has a relation to ...