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What Happens When Your Rental Property Is Fully Depreciated? A Guide for Real Estate Investors

Depreciation is a valuable tax benefit for rental property owners, allowing them to deduct the cost of their property over time. However, once a property is fully depreciated, it's essential to understand the implications for your investment strategy and tax planning. ๐Ÿ  Understanding Rental Property Depreciation The IRS permits property owners to depreciate residential rental properties over 27.5 years using the Modified Accelerated Cost Recovery System (MACRS). This means that each year, you can deduct a portion of the property's cost (excluding land value) from your taxable income. Depreciation begins when the property is placed in service and continues until you've recovered the property's cost basis or retire it from service, whichever comes first . ๐Ÿ“‰ What Does "Fully Depreciated" Mean? A property is considered fully depreciated when the total depreciation deductions equal the property's cost basis (excluding land). At this point, you can no lon...

Got Mail From the IRS? Here’s What Every Homeowner Should Know

  Plus: How Owing the IRS Can Affect Your Property If you’ve ever opened your mailbox to find a letter from the IRS, your first instinct might be to panic—but don’t worry. While receiving official correspondence from the IRS can be unsettling, it’s not always bad news. As a real estate agent, I know how financial decisions—including tax issues—can affect your homeownership and property goals. Let’s break down what you should do when you get mail from the IRS, and how owing the IRS can potentially impact your property. ๐Ÿ“ฌ Why You Might Get a Letter From the IRS The IRS sends notices and letters for several reasons, including: Asking for information about your federal tax return Notifying you of changes to your account Requesting payment for taxes owed Clarifying a specific issue or error on your return Here’s what to do if you receive one: ✅ 1. Don’t Panic—Read Carefully Most IRS letters are routine. Take a deep breath and read the notice thoroughly. The letter...

How to Decorate a Wall and Add Value to Your Home: Tips for Buyers and Sellers

One of the easiest and most effective ways to transform a room is by decorating the walls. Whether you're settling into a new home or staging a property to sell, what you choose to do with your wall space can dramatically change a home's look, feel, and perceived value. From wallpaper to paintings, wall prints to custom murals, there’s no shortage of creative ways to make your walls shine. We explored popular wall decor options from Amazon ( see wall decor ideas here ) and compared the pros and cons of each—plus how they may impact your home's value when it’s time to sell. (Disclaimer: Some of the links on here are affiliate links and I may earn if you click or buy on them, AT NO EXTRA cost to you. Hope you find the information here useful! Thanks.)  1. Wallpaper ๐Ÿ“Œ Best for: Bold designs, statement walls, renters (with peel-and-stick options) Pros: Available in endless designs, colors, and textures Peel-and-stick wallpaper is renter-friendly and removable Add...

Why Real Estate Remains a Top Investment Choice in 2025

In an ever-evolving financial landscape, investors continually assess where to allocate their resources for optimal returns. While assets like gold and Bitcoin have garnered attention, real estate consistently stands out as a reliable and rewarding investment. Stability and Tangibility Real estate offers a tangible asset that provides both utility and value appreciation. Unlike volatile markets, property investments tend to be more stable, offering predictable income through rentals and potential tax advantages. Comparative Performance While gold and Bitcoin have experienced significant price fluctuations, real estate has demonstrated steady growth. For instance, as of May 2025, Bitcoin trades at approximately $108,929, reflecting its inherent volatility. In contrast, real estate values have shown consistent appreciation, making it a more dependable investment. Inflation Hedge Real estate serves as an effective hedge against inflation. As living costs rise, property values a...

New Construction Offers Price Relief Amid Tariff Concerns

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I n the current housing market, newly built homes are emerging as a beacon of affordability for prospective buyers. According to Realtor.com's Q1 2025 New Construction Quarterly Report, the median list price for new homes has slightly declined year-over-year to $448,393. This decrease has narrowed the price gap between new and existing homes to its lowest level for any first quarter in five years, making new construction an increasingly viable path to homeownership. "America is short approximately four million homes, and new construction is stepping in to fill the affordability gap left by a tight existing home market," said Danielle Hale, chief economist at Realtor.com. Builders are addressing affordability challenges by delivering smaller homes at lower prices and offering financial incentives that make monthly payments more manageable. For instance, the average mortgage rate for new construction buyers is approximately 0.5 percentage points lower than for buyers o...

The Beauty and Burden of Trees in the Pacific Northwest — What Every Homeowner Should Know

Living in the Pacific Northwest has its perks—breathtaking mountain views, crisp coastal air, and of course, the towering evergreens that frame our landscapes like a scene from a nature documentary. But as any longtime resident will tell you, those beautiful trees can also cause serious stress when the wind picks up. Tree branches fall, trunks sway, and suddenly you're wondering if that majestic fir in your backyard is more of a hazard than a treasure. Whether you’re a homeowner preparing to sell, just settling into your dream property, or maintaining your investment for the long term, understanding tree health, maintenance, and safety is essential. (Disclaimer: Some of the links on here are affiliate links and I may earn if you click or buy on them, AT NO EXTRA cost to you. Hope you find the information here useful! Thanks.)  ๐ŸŒฒ Signs Your Tree May Need Help While many trees are resilient, they can suffer from disease, rot, or damage over time. Here are some signs your tree mi...

Wire Fraud and Real Estate: What to Do If You Suspect You're a Victim

In today’s fast-paced real estate market, wire fraud has unfortunately become a growing threat. Scammers are finding increasingly clever ways to trick buyers, sellers, and even agents out of thousands of dollars—often during the final stages of a property transaction. If you suspect wire fraud has occurred, time is critical. Here’s what you should do immediately to try to recover your funds and limit further damage. ๐Ÿšจ Steps to Take Immediately if You Suspect Wire Fraud: Contact Your Bank Right Away Call your financial institution the moment you notice anything suspicious. Ask them to stop the wire transfer and start an official fraud investigation. Request that they reach out to the receiving bank where the funds were sent. Notify the FBI Contact your local FBI field office as soon as possible. The FBI, along with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN), may be able to help freeze or recover your funds. File a...