Real Estate Math

A property is depreciated over 27.5 years (residential) for income tax purposes. If the depreciable basis is $275,000, the annual depreciation deduction is:

A$5,000
B$10,000✓ Correct
C$15,000
D$27,500

Explanation

Annual depreciation = $275,000 ÷ 27.5 years = $10,000 per year.

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