Will Form 4797 Calculator 2024-2025

Welcome to another edition of Tuesday tidbits, where we make Tax and Accounting simple. I'm your host Charles D. Shapero, CPA, with Widget Bookkeeping and Tax. Today, we're going to talk about the depreciation of real estate. A lot of people, a lot of our clients, buy rental real estate, whether it be commercial or residential. That's really how they're broken out. When you depreciate residential real estate, say we have an apartment building that we're renting, that building gets depreciated over twenty-seven and a half years. If you're doing commercial, like a strip mall, that is 39-year property. But that's not all. I just kind of lump them into two baskets. When we buy a rental house, there are several things we're buying. We're buying the house. We're also buying land, the land that the property sits on. We're also buying some appliances in that building and maybe some land improvements. So now I've just chopped this one asset that we said was going to be depreciated over twenty-seven and a half years, and I've chopped it up into several different categories. The appliances, when you buy them, are five-year assets. That's a lot more rapid right-off than taking twenty-seven and a half years. So to the extent that we have appliances, we probably want to break them out. I also mentioned land. Land is not as happy as appliances because land, we can't write off at all. Land does not depreciate. So let's just say we spend 200 grand on this house, maybe 20 thousand of that relates to the land, which we'll never be able to write off until we sell the property. So no depreciation on land. I mentioned land improvements. That'd be like a parking lot or a fence. Those items are written off over 15...