Form 4562

[Nicholas J.]

So looking at form 4562 on last years tax return, what might be the value on line 17 for somebody with 1 rental property. I purchased a rental home in 2012 for 120k, line 17 on my tax return says $116...I'm not so sure my tax guy knows what he's doing, or I'm not quite understanding depreciation...thanks

[Brandon Hall]

@Al Wilson I will indirectly. Someone will read this and give me a call :)

@Nicholas J. if you value your money, you should immediately fire your tax accountant. His advice is so poor it's mind blowing. He clearly lacks any clue as to how depreciation works, which is really bad because that's "Real Estate Tax 101." Seriously, fire him. You're better off alone at this rate.

You MUST depreciate a property. It is a requirement, not an option. For the reason you cited - the IRS will apply depreciation to your property whether you have actually taken the depreciation. So you can't avoid the recaptured tax when you sell, why not go ahead and take advantage of the perceived benefits today? 

The IRS has a rule with the words "allowed or allowable" meaning "taken  or could have taken." If you don't take depreciation, they will still slap you with the recapture tax in the amount you should have taken.

Stop messing around with amateur tax people and hire a pro.