Real Estate Investment Analysis - Depreciation Estimator

 

Notes:

• What problem does it solve?
  This code calculates the depreciation of a property for tax purposes based on a given depreciation schedule.

• How can businesses or users benefit from customizing the code?
  This can help property owners calculate tax savings over time due to property depreciation.

• How can businesses or users adopt the solution further, if needed?
  The model can be adjusted for different property types or tax regulations.

Actual Python Code:

class DepreciationEstimator:

    def __init__(self, purchase_price, useful_life, depreciation_method='linear'):

        self.purchase_price = purchase_price

        self.useful_life = useful_life

        self.depreciation_method = depreciation_method

    

    def annual_depreciation(self):

        if self.depreciation_method == 'linear':

            return self.purchase_price / self.useful_life

        # Other depreciation methods can be added here

        return 0

# Example usage

depreciation = DepreciationEstimator(purchase_price=500000, useful_life=27.5)

print(f"Annual Depreciation: ${depreciation.annual_depreciation():.2f}")