Presently you are required to use which method of depreciation in real estate investments?

Question

Quizplus · Accepted Answer

Straight-line method is commonly used for real estate investments as it evenly distributes the depreciation expense over the useful life of the property. This method is simple, easy to calculate, and provides a reliable estimate of the property's depreciation over time. Other methods, such as Sum-of-the-digits or Rule of 78s, may result in disproportionate or accelerated depreciation expenses, which may not accurately reflect the property's actual depreciation. LIFO and FIFO are inventory costing methods and are not applicable to real estate investments.

Presently You Are Required to Use Which Method of Depreciation