Only the BUILDING portion of your property is depreciable for tax benefits
Summary
When investing in STR properties, the type of market can significantly impact depreciation and tax benefits. Beach and desert markets often have higher land values (30-50%), resulting in lower depreciable basis compared to mountain, forest, or lake markets (10-30% land value). The higher the depreciable basis, the higher the potential tax savings.
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Curated by Learn STR by GoStudioM