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Here’s an example of how this works and why depreciation is such a significant tax benefit for real estate traders. You can continue to take depreciation deductions in your business properties annually till you promote or until your whole cost basis within the property has been depreciated. There are a few acceptable ways to determine the value of the land, including a property appraisal or tax evaluation. There are poorly constructed buildings that must be torn down after 10 years, and there are business buildings which have been in service for tons of of years.
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