Depreciating Your Frisco TX Rental Property

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One of the benefits of investing in real estate in Frisco, TX is that you can gain access to tax breaks by learning how depreciation works. It’s great to make a profit on your rental property however you also want to ensure that you don’t pay more in taxes than you need to. This is where depression comes in.

One thing to remember about deprecation is that there are some rules you need to follow.

  • Only the physical structure can be deprecated.
  • You must be the actual property owner and not the tenant.
  • The land the property sites on cannot be depreciated.
  • A rental property can’t be deprecated until it is rentable.

Most rental properties can be deprecated for up to 27.5 years. Also remember that items in the property like washing machines, dishwashers etc are 5 year assets so can be deprecated over 5 years. Land improvements such fences can be deprecated over 15 years.

To work out the amount of deprecation for the year, divide the value of the house by 27.5 and this will give the the yearly deprecation. If you need the monthly amount divide yearly amount by 12.

Below is a video that further explains deprecation.


We are Frisco, TX home specialists. If you have any questions about real estate in Frisco, or any neighboring DFW communities, please fill out our contact form, or call 469-556-2393 for assistance.

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Nick Walton
JP And Associates REALTORS
469-556-2393
Nick@TrackingTheWeb.com