Question about taxes/ searching for a R.E friendly CPA to do my return

[Michael Clark]

Hello all! I’m looking for a CPA to do my taxes that is knowledgeable about all things real estate. I’m a realtor and was asking my current accountant about depreciating my residential property and writing that off against my real estate income. Since I am a “Real Estate Professional” I thought I was able to do this. He told me that if I were to do that I’d be taxed extra-heavily if I ever wanted to sell my property down the road. Can anyone shed some light on this? Thanks in advance!

[Sean O'Keefe]

Quote from @Michael Clark:

Hello all! I’m looking for a CPA to do my taxes that is knowledgeable about all things real estate. I’m a realtor and was asking my current accountant about depreciating my residential property and writing that off against my real estate income. Since I am a “Real Estate Professional” I thought I was able to do this. He told me that if I were to do that I’d be taxed extra-heavily if I ever wanted to sell my property down the road. Can anyone shed some light on this? Thanks in advance!

I think your CPA is referring to Depreciation Recapture (25% on all depreciation taken during life or rental REP or not).

Depreciation Recapture can be deferred on sale with 1031 exchange.

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