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in this segment we will be discussing one of the most docHub tax breaks for Real Estate Investors depreciation depreciation is the process of deducting the cost of a property over a period of time reducing your taxable income and saving you money on taxes in this presentation we will explore how depreciation works and how it can benefit you as a real estate investor what is depreciation depreciation is a tax benefit that allows you to deduct a portion of the cost of your rental property over a period of time the IRS has set the depreciation period for rental properties at 27.5 years this means that you can deduct a portion of the cost of the property each year reducing your taxable income and saving you money on taxes how does depreciation work the process of depreciation is straightforward You Begin by determining the cost of the property which includes the purchase price closing costs and any improvements made to the property once you have this number you divide it by 27.5 whic