


| What are Depreciation Schedules? |
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A depreciation schedule is the portion of your property purchases that you can expense each year and is established (and fixed) in the year of purchase. The depreciation schedule is used up until the date of sale for that property, the written down depreciated value is then the base value for selling, even though the property or land may have inflated, this means that the legitimate sale price less the written down (depreciated) figure may equal a gain. The expenses to building and improvements add to the base price, therefore the gap may not be as great creating less of a capital gains tax to your disposal of a property. Purchase amount + building/improvements - building-depreciation + other revenue = Written Value. Sale Amount - Written Value = Capital Gain or Loss |
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