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227 tax time Q&A with an accountant

Dev Raga Personal Finance

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Is Depreciation a Cash Transaction?

The difference between depreciation and deductions is, i think the k difference is with deductions, it's normally something that you would pay to maintain the investment property for your tenants tat o living in. Whereas depreciation isn't a cash transaction. It's something that you recognize as the waranter for the assets within the property. So it's a non cash transaction that you can recognize within your return to claim deduction against your accessible income.

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