Real Estate Math
A Louisiana property's income tax depreciation basis is $325,000 (residential property). Using 27.5-year straight-line depreciation, what is the annual deduction?
A$10,909
B$11,818✓ Correct
C$12,500
D$16,250
Explanation
Annual depreciation = $325,000 ÷ 27.5 = $11,818 per year (straight-line residential depreciation period is 27.
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