Posted by JOHN K HASLACH, CPA, MST on May 05, 2004 at 08:28:27:
First, you must allocate part of the purchase price to land. The remainder of the purchase will most likely be depreciated over 27.5 years. If you have a cost segregation analysis done, you may be able to accelerate depreciation, reduce taxes and increase cash flow allowing for additional real estate investments.