Skip Useful Life Tax Depreciation?

[JayCinta Henry]

An accountant friend advised not to take the 27.5 years depreciation because when/should I sell the property, federal taxes will be due on the total amount depreciated and written off.  What do you make of this?

If you do a 1031 exc. and you took the 27.5years depreciation, doesn't that benefit you, or does the tax incidence will travel into the new property?

[Dave Foster]

@JayCinta Henry, In a 1031 exchange the tax and depreciation recapture do follow you.  You don't get to re-start depreciation.  However there is a huge benefit in that as long as you continue to own the replacement property or do another. 1031 when you sell it you will continue to not have to pay the tax and depreciation indefinitely.

And if you purchase more than you sell you will be gaining additional depreciable basis which does add to your tax right off.