Quote:
Originally Posted by anyonebutedmonton
You don’t get to depreciate on the entire $10M. There is a division between the land and the building.
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Most real estate purchases are also financed, so the $10 million dollar number isn't accurate in that regard either.
The other thing that seems to happen is inflating your operational expenses just to get to the point where the amount you can depreciate is offsetting whatever income you had left over and boom, income taxes avoided.
There has to be a reason you can depreciate an asset that appreciates in value for such a long period of time?