I’m always shocked when I’m chatting with an established real estate investor and the conversation takes an unexpected turn.
Social interactions aren’t my strong suit, no new information there.
What’s supposed to be surprising is the number of real estate investors who don’t understand depreciation. Their approach is: buy property, make money, dump receipts on accountant’s desk and receive tax return.
I recognize that while I don’t have a degree in accounting or finance, my current and former careers forced me to learn about those subjects. Not everyone has that luxury.
So, I thought I’d take a crack at explaining the basics of depreciation…with comics.