Being Too Conservative About Depreciation Can Cost You


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 As you know, we advocate building a nest egg without having to rely on social security or your company pension funds. We recommend you use real estate to be financially independent, so you don't have to rely on either the government or your company.

If you are too conservative about the depreciation of your investment property, you are doing yourself a disservice. Property tax is based on two factors: land values and improvements. Improvements can be depreciated, while land values cannot - most people use a tax assessor to estimate the depreciation of improvements.

If you have purchased a home in the last few years, you may be able to get an amendment so that you don't have to pay more in taxes than you're entitled to. We can provide a Broker Letter for you that has a different estimate of the improvement value. This could save you money on your taxes and make your real estate venture a stronger investment.

Does this sound like something you might be eligible for? Don't hesitate to give us a call. We would be happy to be your Los Angeles area real estate resource.

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