Capital Expenditures versus Repairs:
A business repair generally does not prolong the life or add value to the property, and it typically maintains the property in its normal operating state. For these reasons it is deductible as a business expense.
The expense is not deductible as a business expense, but instead the cost is capitalized and depreciated over the property's useful life.
Capital Expenditures include:
- Adds value to the property
- Substantially prolongs the useful life of the property
- General plans of improving, altering or renovating the property
Business Use Versus Personal Use:
- If business use of the listed asset is greater than 50%, then the owner may use the statutory percentages for depreciation.
- If business use of the listed asset is equal or less than 50%, then the owner must use straight line depreciation.
Section 179 Deduction
Financial AdvisorHow the depreciation tax rule can assist real estate investors.
InvestingIt's a bit tricky, but a valuable tool to make your investment pay off.
InvestingAnyone involved in a real transaction can benefit from gaining a basic understanding of the different methods of real estate valuation.
TaxesBeing a landlord can be taxing, especially when you want to sell. Find out how to reduce your burden.
InvestingThe amount of a property tax bill is based on the property’s value, the exemptions it qualifies for, its use and the local property tax rate.
Small BusinessCapitalization Rate is a financial term most commonly used in the real estate investment industry. It is often simply called the Cap Rate.
TaxesIn regards to the sale of property, particularly in real estate, a 1031 exchange is increasingly being recognized for its tax benefits to investors of all levels.
Managing WealthCheck this list if you are thinking of making a purchase and becoming a landlord.