Offset Rising Cost of Interest Rates by Claiming Property Depreciations

Property depreciation is defined as the decline in value of a building and its assets over the time due to wear and tear as well as physical deterioration. Depreciation on rental property or investment property is treated as an expense and is a part of the income statement. Actually property depreciation can be applied only to the building and not the land, since land is not considered to wear out over time. Generally there are two types of costs that can depreciate for an investment property; 1. Wear and tear of the fixtures and fittings of a property. 2. Capital

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