They say the key to success in real estate is “location, location, location.”
But location is also important when it comes to your office.
If your office is in your single-family home, you have to depreciate that office using the 39-year depreciation method.
But if you locate your home office (or other office) in a duplex or apartment building you own, you might qualify under the 80 percent rules for 27.5-year depreciation.
You’ll get the whole money-saving story when you read my new article titled Tax Savings Tip: Increase Office Depreciation Rate by 42 Percent!
Three ways our fact-filled article can help you:
- We’ll explain the extremely important 80 percent rule. This rule determines whether or not your building is considered a residential rental property — a key fact you’ll need to prove. The 80 percent rule has two parts, both of which we’ll explain when you read the full article.
- We’ll show you how different scenarios affect your bottom line. Want to add a home office to your duplex? Want to make your office a duplex? Want to put your office in your apartment complex? We’ll explain the tax implications of your decisions when you read the full article.
- You’ll learn what to do if you’re using the wrong depreciation method. There are two good fixes you can use if you haven’t been taking advantage of the 80 percent rule’s provisions. We’ll explain both fully when you read the full article.