How to Calculate Depreciation on Rental Property: Maximize Your Income

depreciation

To accurately calculate depreciation, a property owner must determine the basis of the property, which is generally the cost of acquiring the property plus any improvements minus any land value. The IRS dictates specific methods and schedules for calculating depreciation, which can be complex but are essential for ensuring legal compliance and maximizing tax benefits. … Read more

What is Cap Rate? The Key to Profitable Real Estate Investments

Cap Rate

Capitalization rate, commonly known as cap rate, is a fundamental metric used by real estate investors to assess the potential return on investment of a property. It represents the ratio of a property’s net operating income to its current market value or purchase price. Understanding the cap rate can help you gauge the profitability of … Read more