Welcome to the world of passive real estate investing. The adventure continues. You have made a decision to invest in a syndication that offers great returns and with a team that you know, like and trust. Will it be a bumpy ride, or will the syndication team execute every aspect of their business plan flawlessly?
This accounting expense can seem almost magical, but as assets tend to wear out over time, we can account for that reduction in value, deducting the cost of an asset over its useful life. Contrary to popular belief, depreciation does not fully eliminate the need to pay taxes… But it can delay them substantially and there are great benefits along the way.