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how to compute depreciation on rental property

1Answers
Mitchell
11/28/2025, 06:58:50 AM

To compute depreciation for a rental property, start by identifying the property's depreciable basis, which is the purchase price minus the land value. Then, use the straight-line method to spread this cost over 27.5 years for residential rentals, as specified by the IRS, allowing for annual tax deductions.

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