The Annual Depreciation Allowance of an asset is the depreciation of an asset and how much an investor is allowed to write off every year on his tax returns.
Let’s assume that you bought an asset or rehabbed a property. In this case, you would deduct some of these costs on your tax returns. However, there is an amount you are allowed to write off on your tax return.
Rental and residential properties start depreciating as soon as they are placed in services or as a rental properties.
Some of expenses deducted on properties include but not limited to mortgage insurance, professional services, property taxes, office expenses, etc.
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