Can someone explain Rental Property Depreciation? Having trouble how the 3.636% annual deduction works? Does this mean after 27.5 years I have essentially a “free” building on my land?

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Can someone explain Rental Property Depreciation? Having trouble how the 3.636% annual deduction works? Does this mean after 27.5 years I have essentially a “free” building on my land?

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Anonymous 0 Comments

Nope because it is a continuing percentage deduction which means each year it is a smaller dollar deduction, so the amount is always a net positive figure even after 1000 years.

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