Tax, Legal Issues, Contracts, Self-Directed IRA

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Jon Fletcher
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Depreciation and Passive Losses

Posted Jan 23 2022, 14:20

I read a lot here about people having passive losses or paper losses once depreciation is factored in. But depreciation for a residential property is only 3.636% each year (27.5 years). I know this is a good problem to have, but my properties generate a return closer to 6% per year after expenses, so there is still taxable income. Am I missing something? 

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