Capital gains on real estate are realized through price depreciation.

Question

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Capital gains on real estate are realized through price appreciation, not depreciation. When the value of a property increases over time, the owner can sell it for a profit and realize capital gains. Depreciation, on the other hand, refers to the decrease in value of a property over time due to wear and tear, obsolescence, or other factors. It can be used to reduce the amount of taxes owed on a property, but does not generate capital gains.

Capital Gains on Real Estate Are Realized Through Price Depreciation