New Poll-most people think there is no housing slump

[Farls]

I suspect there’s some fuzzy math involved with that…But good luck.

[davelj]

I’m a little curious as to how you’re able to depreciate the entire price of the property as opposed to just the structure itself. Land isn’t depreciable. Is the land worth nothing? If so, you’ve got a very interesting property on your hands.

[davelj]

I’m a little curious as to how you’re able to depreciate the entire price of the property as opposed to just the structure itself. Land isn’t depreciable. Is the land worth nothing? If so, you’ve got a very interesting property on your hands.

[surveyor]

depreciation

Yes, Dave, you are correct that you are not able to depreciate the land. However, the part you are able to depreciate is about 90% of the purchase price and the other 10% is chattel depreciation, so it comes out about the same.

As for fuzzy math, sure, it’s not exact to the penny, but it more than illustrates how correct my statements were.

[surveyor]

depreciation

Yes, Dave, you are correct that you are not able to depreciate the land. However, the part you are able to depreciate is about 90% of the purchase price and the other 10% is chattel depreciation, so it comes out about the same.

As for fuzzy math, sure, it’s not exact to the penny, but it more than illustrates how correct my statements were.

[sdrealtor]

In South Carolina it would not suprise me to hear the value of the alnd was neglible.

[sdrealtor]

In South Carolina it would not suprise me to hear the value of the alnd was neglible.

[surveyor]

taxes

Also, one more note – the tax deduction in the calculation above, only part of it is depreciation. There are other expenses and tax breaks you can access if you invest in real estate. So technically the tax deduction portion can be greater than the number I’ve shown.

sdrealtor, you crack me up.

[surveyor]

taxes

Also, one more note – the tax deduction in the calculation above, only part of it is depreciation. There are other expenses and tax breaks you can access if you invest in real estate. So technically the tax deduction portion can be greater than the number I’ve shown.

sdrealtor, you crack me up.

[davelj]

That surprises me in the context of that WSJ article from a few months ago stating that “land’s share of property prices increased on average to 51% in 2004 from 32% in 1984.” Now, granted, we are talking South Carolina here. But, I’d think at least 20% of the purchase price would be assigned to the land. But, hey, whatevs.

[davelj]

That surprises me in the context of that WSJ article from a few months ago stating that “land’s share of property prices increased on average to 51% in 2004 from 32% in 1984.” Now, granted, we are talking South Carolina here. But, I’d think at least 20% of the purchase price would be assigned to the land. But, hey, whatevs.

[Author]

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