Why would an owner want to depreciate a rental property?
I am studying Real Estate materials, and I just learned that a self who flips to many houses can be considered a dealer. Once a self is considered a dealer, he/she won’t be able to depreciate any of their leasing properties. Why would a self want to depreciate a leasing property?
Tax Breaks!!!!!!!!!!!!
You would get a larger tax enter off by depreciating a leasing property. It make sense if you plot to hold the property for a long time.
If a self is a dealer, he probably is not holding it to rent. He is holding to sell immediately. If a self rents, they want to recover the cost of the property via depreciation to reduce the taxes.