What are the benefits to the real estate investor?
Increased Cash Flow to the Investor Because depreciation deductions on investment properties can more than double during the first three years, having a chattel appraisal can increase a property’s cash flow. For instance, with $1000 in tax savings, about $80 a month would be added to the net cash flow of a property. Net Tax Reduction A chattel appraisal can significantly reduce taxable income now and capital gains in the future. Just $15,000 worth of chattel can save more than $750-$900 off taxes in the first year alone. The average value of personal property found in a 1500 square foot house is approximately $15,000. Depending on the income tax bracket, that could be a savings of $3750-$4500 off of taxable income over the next 5 years. That translates to an average yearly savings of $750-$900. The personal property appraisal has more than paid for itself, and has an additional four years of depreciation to utilize. Instant Inventory A chattel appraisal contains detailed information ab
