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Updated almost 4 years ago,
Is there way for accelerated depreciation on commercial property?
I recently bought a property at a higher price because of the very high rent it was getting (based on an existing lease). In four years the current lease will come to an end and the rent will go down most likely by 50% and if I want to sell the property at the time, I will most likely get 70% of my investment back. It is still worth it due to the high rent I am getting right now. Since I bought it with cash on an absolute net basis, all of my income will be taxable (less the depreciation).
My question is, is there a way I can write off a greater amount of depreciation due to the conditions I described above? Or is it a hard and fast rule with IRS that I can only write off whatever the building value is in 27.5 years? Is there a wiggle room for accelerated depreciation for special circumstances such as this?
Thank you,