4. Deprecation is Good in Tax Preparation
A house or other deductible property that loses value in the tax year is a bad thing on its face, but it is also deductible during tax preparation. The rich often do what is called a cost segregation study to help minimize their tax liability on assets that have depreciated. Eligible types of property include but are not limited to:
• Buildings
• Land, air, and sea vehicles
• Machinery and equipment
• Furniture
• Patents and copyrights
• Computers, peripherals, and software