If I am a share holder, how can I benefit from depreciation?

How Carré Shareholders Benefit from Depreciation

Florian Huchedé

Last Update há um mês

Share holders can benefit from depreciation through a unique advantage. Our accountants use the MACRS method to calculate depreciation, spreading it over 27.5 years for each property. While you earn rental income and witness property appreciation, the property's value decreases on paper for tax purposes. 


Although it may seem counterintuitive, this presents a significant benefit in U.S. real estate ownership and investment. For instance, if you earned $100 in rental income but the property's paper depreciation (for tax purposes) was $1000, and you owned 10% of the holding entity, you would benefit from a paper loss of $100. This loss offsets your rental earnings completely. Depreciation rules may vary in different countries.

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