Taxes for landlords, part 3 - Depreciation and Amortization

In this video, I take a very oversimplified view of depreciation, focussing on the depreciation of buildings and of assets such as appliances.

2025 UPDATE:

Under the One Big Beautiful Bill Act (OBBBA), 100% bonus depreciation has returned for 2025 and has been made more or less permanent.

To learn more about MACRS, click here:    • Depreciation 101:  What is MACRS?  

Other videos on rental property:
Rental Income:    • Taxes for Landlords, Part 1: What is Renta...  
Rental expenses:    • Taxes for Landlords, part 2:  Rental Expenses  
Schedule E:    • Taxes for Landlords 4:  Putting it all tog...  
Rental Loss Limitations:    • Taxes For Landlords: Rental loss limitations  
Selling Rental Property:    • Taxes for Landlords, pt. 5: Selling a Rent...  

Additional information and resources:

Investopedia "Bonus Depreciation": https://www.investopedia/terms/b/bonu...

IRS Publication 946 "How to Depreciate Property": https://www.irs.gov/pub/irs.pdf/p946.pdf

IRS Form 4562 "Depreciation and Amortization": https://www.irs.gov/pub/irs-pdf/f4562...

IRS Publication 527: "Residential Rental Property": https://www.irs.gov/pub/irs-pdf/p527.pdf

IRS Schedule E: "Supplemental Income and Loss": https://www.irs.gov/pub/irs.pdf/f1040...

If you want to know the every day basics of how to be a landlord, web articles aren't going to help much. However, there are dozens of books on the subject available at Amazon.com, your local bookstore, or your local library.

The book I've used is: The Weekend Landlord, by Joseph A. Landon, 2006. It was in its 2nd edition when I bought it, but it may've been updated since then. It is still available through Amazon, if you're interested.

Image Attribution:

Wikimedia Commons C.C. - S.A. (3.0 - 4.0)

Nat Geo Lover
Loenhard Lenz
Bill Family Collection

Intro Music: "Bluesy Vibes" - Doug Maxwell - YouTube Audio Library

Background and Outro Music: George Street Shuffle, Kevin McLeod, http://incompetech.com via YouTube Audio Library

DISCLAIMER: This video is for educational and informational purposes only. It is not intended to render tax advice or investment advice for individual situations. If you have questions regarding your particular situation, please consult with a qualified tax or investment professional.

The tax information in this video is based on tax law and IRS regulations in place when this video was published, and is subject to the whims of Congress.