Depreciation and large taxable income

[Pandu Chimata]

Hello everyone !

I heard that we can/should claim depreciation (if available) on the rental/business properties every year. Obviously, this will help paying less or no taxes at that time.

However, when you sell the house,  you have to pay taxes on the larger sum since the depreciation amount is added to your gains (assuming the house was sold for a profit).

Then how this is going to help real estate investors unless you use 1031 to defer the taxes ? 

Any thoughts ?