Financing Tax Rules and Depreciation

Tax law is the invisible architecture of every real estate transaction. When a client purchases a property in New York, they are not merely buying bricks, mortar, and a plot of land; they are acquiring a complex bundle of tax liabilities and advantages. To the untrained eye, real estate is simply a place to live or do business. To the educated real estate professional, it is a highly favored asset class subsidized by the federal tax code through interest deductions and protected by the phantom expense of depreciation. Understanding the precise mechanics of these tax rules is what separates a mere door-opener from a true fiduciary who can intelligently guide buyers, sellers, and investors through the financial realities of property ownership.