Real Estate and tax implications

Does the Colombian Govt. allow deductions for depreciation of real estate on taxes?

Are there any other benefits to ownership over rent? Obviously with buying (the only alternative with mortgage rates up around 12%) you don't get the benefits of leverage or deducting interest as is the case in the States.

If there is no real effect on taxes by owning, why not just keep your money in reasonably safe investments. Do you think property value appreciation would be more than 6-7% per year?

Any thoughts?
joe.

By jh816 on Aug 18, 2006, 10:25 in Friendly Talkzone.

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ColombiaBoard says on Aug 18, 2006, 17:17: Some answers First of all you should know that the government has a lower limit to classify people who must file a tax return. That limit is 80 million on real estate and/or 60 million on earned income. No, you can't deduct the depreciation of real estate on taxes. But you do get the benefit of leverage because when you're filing your tax return you deduct the value of your debt so in many instances you don't have to pay taxes at all. The value appreciation depends on, as usual, where you buy.

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