Quote:
Originally Posted by anyonebutedmonton
You are assuming that the building is appreciating, which is not necessarily the case. I’m not suggesting it’s perfect, but generally there is a reason that you can depreciate buildings.
In Canada, buildings can be depreciated at 4%, 5% or 10%, depending on the structure.
I just think the is far bigger issues with the tax system than the depreciation buildings.
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For the most part real estate holdings, especially commercial will appreciate in value over 10 year periods.
Also, if someone is going after this kind of investment specifically for the deprecation benefits, they are more than likely not going to be buying real estate holdings in areas where there is a chance the building won't actually appreciate over the term of their ownership.
I agree there are much bigger issues with the tax code, but this one annoys me the most because it has no tangible benefit, and allows for massive manipulation, especially if someone is already rich.