Real Estate Math

A Utah property is depreciated for income tax purposes over 27.5 years (residential). A $275,000 building (land excluded) has an annual tax depreciation of:

A$10,000✓ Correct
B$9,167
C$11,000
D$7,500

Explanation

Annual depreciation = $275,000 ÷ 27.5 = $10,000.

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