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A “Zero” investment is a real estate investment that provides a relatively inexpensive source of depreciation and interest expense to offset passive income from other real estate investments.  By purchasing a Zero, a buyer is “purchasing” the tax benefits from interest expense deduction on the asset’s loan and the depreciation from the asset’s tax basis.  Typically, the asset’s depreciable life for a commercial property is 39 years; however depreciation in the initial years can be increased following a cost segmentation study.

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