Straight-Line Depreciation

January 1, 1 6 min read Definitions

Depreciable Real Estate Tax Depreciation Internal Revenue Code Section 167 Investment Property Business Property Real Estate Capital Depreciation Methods Straight-Line Depreciation

Depreciable real estate refers to property used in a trade or business or for investment purposes that is subject to depreciation deductions under Section 167 of the Internal Revenue Code. This typically includes both residential and commercial properties, excluding the value of the land.

January 1, 1 7 min read Definitions

Excess Accelerated Depreciation

Excess Accelerated Depreciation Taxation Depreciation Recapture Real Estate Taxation Ordinary Income Capital Gains Accelerated Depreciation Straight-Line Depreciation

Excess accelerated depreciation refers to the accumulated difference between accelerated depreciation claimed for tax purposes and what straight-line depreciation would have been. It's typically recaptured as ordinary income upon sale instead of receiving more favorable capital gains treatment.

January 1, 1 6 min read Definitions

Straight-Line Depreciation

Straight-Line Depreciation Depreciation Methods Real Estate Accounting Tax Deduction Property Valuation Useful Life Salvage Value

Straight-Line Depreciation is a method that applies equal annual reductions in the book value of a property. It is primarily used in accounting for replacement and tax purposes.