Real Estate Math
A Nebraska apartment complex costs $2,400,000. The land is worth $350,000 and the improvements $2,050,000. Using IRS straight-line depreciation for residential rental property (27.5 years), the annual depreciation deduction is:
A$74,545.45✓ Correct
B$87,272.73
C$80,000.00
D$74,909.09
Explanation
Annual depreciation = Improvements ÷ 27.5 = $2,050,000 ÷ 27.5 = $74,545.45. Using the values given ($2,400,000, $350,000), apply the appropriate formula.. The correct answer is $74,545.45.. This is a common calculation on the Nebraska real estate exam.
Related Nebraska Real Estate Math Questions
- A Nebraska commercial property has a monthly gross rent of $12,500 and a GRM of 140. What is the estimated value?
- A Nebraska property's assessed value is $195,000. The assessment ratio is 100% of market value. The mill rate is 22 mills. Annual property taxes are:
- A 1/8 section of Nebraska farmland priced at $6,400/acre. What is the total price?
- A Nebraska property sells for $275,000. The buyer's agent earns 3% commission. The buyer's agent splits 40% to their broker. The agent keeps:
- A Nebraska seller nets $215,000 after paying a 6% commission. What was the sale price?
- A Nebraska farmland parcel is described as the NW¼ of Section 14, Township 5N, Range 3W. How many acres does this parcel contain?
- An investor buys a property for $400,000 and sells it 3 years later for $460,000. What is the percentage appreciation over the 3 years?
- A Nebraska home's assessed value for tax purposes is $298,500. The mill rate is 19.5 mills. The homeowner qualifies for a $40,000 veteran's exemption. Annual taxes are:
Practice More Nebraska Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nebraska Quiz →