Depreciable Real Property

In taxation, real estate that is subject to deductions for depreciation which includes income producing property as well as property used in a trade or business. Example: Abel buys an apartment complex for $1 million. Of the purchase price, $100,000 is the value of the land, the remaining $900,000 is the value of depreciable real estate. Abel uses the straight-line depreciation method and a 27 ½ -year remaining depreciable life.