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Allow Real Estate Asset to use commercial depreciation method, or custom amount

US commercial real estate uses 1/39 rule instead of 1/27.5 Allowing the selection of the commercial rule would be handy, or possibly just allowing a custom amount to be entered until the entirety of the building value is depreciated. Of course, yearly improvements would need to be added to the total being depreciated, and some amount of additional depreciation would need to be applied.

2 votes

Tagged as Suggestion

Suggested 22 December 2022 by user Shawn S

Moved into Completed 19 January 2023

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  • 22 December 2022 Shawn S suggested this task

  • 22 December 2022 Kyle Nolan approved this task

  • 11 January 2023 Kyle Nolan moved this task into Building

  • 19 January 2023 Kyle Nolan moved this task into Completed

  • avatar
    Dominik Preusche

    Important! That is one of the dominating parameters in a tax strategy. In the German tax system for one, depreciation is legally deemed a linear 2% = years, but there are special depreciation regimes (3%=33 years linear for new buildings, progressive depreciation…). I you prove a shorter rest usage time of the bulding, you can use that, say 25 years = 4%. The depreciation base congruently not the purchase price, but only the building portion. One property can have multiple “depreciation chains”, differing in starting date, depreciation base and depreciation rate. E.g., major investments can have trigger a new “depreciation chain”. So…

    22 September
  • avatar
    Dominik Preusche

    … my practical suggestion would be to either make a menu for depreciation under the property tab OR make inbuilt depreciation desectable and model depreciation as a “Tax Reduction” under “Income”. Being a newbie here, I might not have understood the existing possibilietes, though

    22 September