Real Estate Math
A Florida commercial building was purchased for $800,000 (land value = $200,000). Using straight-line depreciation over 39 years, what is the annual depreciation deduction for tax purposes?
A$20,513
B$15,385✓ Correct
C$25,641
D$10,256
Explanation
Only the building (improvements) is depreciated, not the land. Building value = $800,000 − $200,000 = $600,000.
Related Florida Real Estate Math Questions
- A Florida property sells for $490,000. The buyer obtains a $392,000 mortgage. What is the down payment percentage?
- A Florida property leases for $28,000/year. The landlord uses a capitalization rate of 7% to value the property. What is the estimated value?
- A Florida property sells for $375,000. The documentary stamp tax on the deed is $0.70 per $100 (or fraction). What is the total documentary stamp tax?
- A Florida seller nets $280,000 after paying a 6% commission. What was the original sale price?
- A Florida property is purchased for $395,000 with a 30-year mortgage at 5.25%. The monthly payment factor is $5.53 per $1,000. With a 15% down payment, what is the monthly P&I?
- A Florida borrower is paying off a mortgage 5 years early. The remaining balance is $215,000. The lender charges a 2% prepayment penalty. What is the penalty amount?
- A commercial space of 4,500 square feet rents at $18 per square foot annually. What is the monthly rent?
- A Florida investor purchases a commercial property for $1,200,000 using a 70% LTV loan. What is the loan amount and the required equity (down payment)?
Practice More Florida Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Florida Quiz →