Can You Depreciate a Rental Property for Tax Purposes?
Money spent to improve the property is depreciated as well. An improvement is anything that enhances the value or usefulness of a property, restores it to new or like-new condition, or adapts it to a new use. The list of potential improvements is endless, but common improvements include:
What kind of expenses can you deduct on a rental property?
Most rental property expenses, including mortgage insurance, property taxes, repair and maintenance expenses, home office expenses, insurance, professional services, and travel expenses related to management are all deductible in the year you spend the money.
How does depreciation affect the value of a property?
A note about depreciation: You may have heard people use the word “depreciation” to describe the decline in value that occurs as a piece of property endures wear and tear. This isn’t really true. Depreciation is about allocating the cost of property, not assessing its value.
