Real Estate Math Video #13 - Calculating Depreciation | Real Estate Exam Prep

In this real estate math prep video, we illustrate how to calculate depreciation of real estate investment property for tax purposes.

Key real estate terms discussed in this real estate exam prep video:

Depreciation -
Depreciation Basis -

Best of luck with your studies...

✅ Subscribe for more FREE tips on how to do YouTube better:

➡️More Real Estate Exam Prep Videos

🛑Recommended Videos
Real Estate Math Playlist

💕My Most Watched Videos:
Real Estate Agent Bookkeeping Spreadsheet - Updated for 2020

👉 The Real Estate Agent's Business Plan Template:

You can find me hanging out most days on Facebook!

New real estate exam prep videos uploaded 2-3x per week to students pass their real estate exam. Feel free to leave a comment, suggestion, or questions asked in the comment section.

Paul Vojchehoske
Mr. Real Estate Seminars, Inc.
The Real Estate Classroom
P. O. Box 540725
Omaha, NE 68154
[phone]

This description may contain affiliate links to products we enjoy using ourselves. Should you choose to use these links, this channel may earn affiliate commissions at no additional cost to you. We appreciate your support!

P.S. Nothing in this video shall be construed as legal or financial advice and is for INFORMATIONAL purposes only! Please consult with a competent attorney, financial advisor, and your broker before implementing anything you’ve learned from this video. Likewise, the issues discussed herein may not be applicable in your state or local jurisdiction.

Cheers,
Paul Vojchehoske

[Masuride]

I signed up with Vaned online school
and every section I am reading I come back to listen to you. Thank you

[stacymirba]

How come we add the $25, 000 closing costs to the value of the property? In my head, I'm thinking the value of the property is $500, 000 and the closing costs are the price of doing business to purchase the property but don't represent the value of the property. Presumably before all this happened, an appraiser valued the property at $500, 000 and not $525, 000

[erikgregory]

Good deal and thanks, but a question—how does one know the price of the land? Is it on the bill of sale or something? I have four single-family home rentals but I’m not sure how to subtract the land. Please advise! Gonna check this channel for more helpful tips.

[loop]

Definitely you’re the BEST!! Thank you 👍

[diegomedina]

Is there a maximum of years a property can be depreciated? For example can a 60 year old Four-plex, still be depreciated???

[abirsworld]

Thanku so much for these amazing videos

[GQ-jvuw]

Is the 14k deprecation a tax write off against my rental income? Or do that go against my property taxes? Or both?

[maramccoy]

I am so confused where the 27.5 comes from, help???

[adamsalinas]

Do you have a video explaining closing cost? I have a practice test question on closing cost I need explained.
Andra can afford to spend $5, 000 in closing costs to refinance her home. The lender quotes closing cost of $800 plus 2 points. The house appraised out at $240, 000, and she can get an 80% loan. Can Andra afford to refinance? The answer is Yes, with $360 left over but I need to know how to work this out.

[shannonlangford]

here's my question. if a homeowner has expenses of $1600 mortgage interest, $2800 property tax, $1350 depreciation, $650 new driveway and $4000 for new roof and no part of the house is for business. What would the allowable income tax deductions be? the answer is $4, 400 but how did they arrive at that figure? Help plz

[rachellachamawi]

How much depreciation for a commercial property that was built in 1990. The cost without the land is $650, 477? Thank you

[seriouslycat]

That would be four people as the couple do not want two bedrooms and want to split the 756/2 for the one bedroom