1031 exchange:
Depreciation Schedules

Depreciation of your property is a complex topic, but residential improvements are depreciated over 27.5 years, while a commercial building is depreciated over 30 years. For a simple example, say you buy a commercial warehouse for $300,000. If you value the land at $50,000, then you would divide $250,000 by 30 (land does not depreciate). This allows you to take $8333.33 in depreciation each year. That can really help! Please note, depreciation is MANDATORY!! When you sell the building, all the depreciation you've ever taken on the building will be "recaptured" and taxed at 25%!! This "extra layer" of tax is often unexpected and makes an exchange even more valuable! Try out some scenarios on our tax calculator: http://www.1031x.com/tax_calculator.cfm

For more information: call 888-899-1031 or email us at infox@1031x.com

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