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To be depreciable, property must have a useful life that extends substantially beyond the year you place it in service. In some cases, it is not clear whether property is held for sale (inventory) or for use in your business. If it is unclear, examine carefully all the facts in the operation of the particular business. The following example shows how a careful examination of the facts in two Why Real Estate Bookkeeping is Critical for Your Business<\/a> similar situations results in different conclusions. You cannot depreciate inventory because it is not held for use in your business. Inventory is any property you hold primarily for sale to customers in the ordinary course of your business.<\/p>\n<\/p>\n Madras Accountancy specializes in helping U.S. real estate investors and CPA firms optimize their financial operations through offshore accounting partnerships. Founded in 2015 and led by CPA Balaji Manohar, we’ve processed thousands of real estate transactions while helping clients reduce accounting costs by 40-60%. Our services include bookkeeping, tax preparation, financial reporting, and fractional CFO guidance, all delivered by experienced accountants who understand real estate’s unique requirements. Commercial real estate accounting is a specialized discipline that requires an understanding of the unique financial dynamics of real estate operations. While standard businesses typically deal with straightforward revenue from sales and service delivery, CRE operators manage complex income streams from multiple tenants, each with different lease terms, clauses, and reimbursement structures. Property management and development companies balance day-to-day operations with large-scale investments and compliance demands.<\/p>\n<\/p>\nProperty Acquired for Business Use<\/h2>\n<\/p>\n