Real Estate Math
A Colorado property is depreciated over 27.5 years for income tax purposes. If the depreciable basis is $275,000, what is the annual depreciation deduction?
A$5,000
B$10,000✓ Correct
C$15,000
D$27,500
Explanation
Annual depreciation = Depreciable Basis / Useful Life = $275,000 / 27.5 years = $10,000 per year.
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