What Is Depreciation in Real Estate—and Why It Matters to Investors

One of the biggest advantages of real estate? Depreciation.

It lets you deduct a portion of the property’s value every year on your taxes—even if the property is increasing in value.

How It Helps You:

• Offsets cash flow from taxes

• Reduces taxable income

• Can result in tax-free distributions

Even better: syndications may use cost segregation studies to accelerate depreciation and enhance investor benefits in early years.

📥 Learn how depreciation helps you keep more income. Download the Passive Investor Guide