When rental property is depreciated,the cost basis of the property is reduced.

Name: When rental property is depreciated,the cost basis of the property is reduced.
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Depreciation is a method of accounting that allows rental property owners to deduct the cost of the property over a number of years, based on its expected useful life. This reduces the cost basis of the property each year until it reaches zero, meaning that the owner has fully deducted the cost of the property for tax purposes.

When Rental Property Is Depreciated,the Cost Basis of the Property