What are the benefits of Depreciation on Rental properties?

[Moira Baggett]

How does depreciation work as a tax benefit to offset taxes due on other income sources?  Is it better to have a more expensive property (for rentals) in order to create more depreciation...or several properties?  Thanks.  I would appreciate any information.

[Basit Siddiqi]

@Moira Baggett

Depreciation is a non-cash tax expense that allows you to reduce your taxable income.
The great thing is that your property can actually appreciate in value over a year but the IRS still entitles you to this deduction.

Compare this to stocks and bonds where there is no similar deduction based on the purchase price of those securities.

Good luck to your investing career!