What is the main benefit of tracking property depreciation?

Prepare for the Oregon Property Management Test. Study with flashcards and multiple choice questions, each question includes hints and explanations. Get ready for your exam!

The main benefit of tracking property depreciation lies in its ability to reduce taxable income. When property owners recognize depreciation, they can account for the wear and tear on their properties. This depreciation can be considered an expense, which effectively reduces the owner's taxable income. By lowering taxable income, property owners may pay less in taxes, thereby resulting in increased cash flow.

Depreciation is a crucial aspect of real estate management as it not only reflects the actual value of the investment over time but also serves as a strategic financial tool. While marketability, investment opportunities, and property value enhancement are important factors in property management, they do not directly impact the financial benefits associated with depreciation for tax purposes.

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