Assume that you are a developer. Last year you completed a commercial real estate project and the building has just completed its first full year of service. The land cost $40M and the sum of hard and soft costs were $160M. You are preparing your tax returns and would like to compute the depreciation. Assume that commercial properties are depreciated on a straight line basis over 39 years and you can ignore cost segregation for now. What is the depreciation charge per year?

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To calculate the depreciation charge per year for the commercial real estate property ... View the full answer