How Does Tax Relief Work: Difference between revisions
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Revision as of 16:58, 10 April 2025
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Depreciation sounds like an expense, however it's generally a tax fringe. On a $125,000 property, for example, the depreciation over 27 and one-half years comes to $3,636 a year. This is a tax deduction. In the early years of your mortgage, interest will reduce earnings on the home so you will not have much of a profit. You could potentially time, the depreciation comes in handy to reduce taxable income from other sources. In later years, it will reduce the amount tax invest on rental profits.
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