Real Estate Math
A North Dakota property is being depreciated for income tax purposes using straight-line depreciation over 27.5 years. If the depreciable basis is $220,000, what is the annual depreciation deduction?
A$6,000
B$7,272.73
C$8,000✓ Correct
D$8,800
Explanation
Annual depreciation = Depreciable basis / Recovery period = $220,000 / 27.5 = $8,000. Note: the correct calculation is $220,000 / 27.5 = $8,000.00.5 = $8,000.
Related North Dakota Real Estate Math Questions
- A North Dakota investor purchases a property for $400,000 and sells it three years later for $460,000. What was the total dollar appreciation?
- A North Dakota REALTOR's monthly MLS fee is $60 and their annual E&O insurance is $1,200. What are their total annual overhead costs from these two items?
- A North Dakota investor expects a 12% return on their investment. They estimate annual NOI of $24,000. What is the maximum price they should pay for the property?
- A North Dakota property sold for $450,000 with a 6% commission. The listing broker keeps 55% of the gross commission and the buyer's broker keeps 45%. How much does the buyer's broker receive?
- A North Dakota industrial building of 20,000 sq ft rents for $6 per sq ft per year on a triple net basis. What is the annual base rent?
- A property's assessed value is $180,000. The tax rate is 25 mills. What is the annual property tax?
- A North Dakota property's assessed value is $210,000. The assessment ratio is 60% of market value. What is the estimated market value?
- A Minot, ND rental property has monthly gross income of $2,400 and a GRM of 110. What is the estimated market value?
Practice More North Dakota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free North Dakota Quiz →