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Updated about 5 years ago on . Most recent reply

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Jonathan Fraundor
  • Bemidji, MN
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How to get around depreciation tax when selling rental property

Jonathan Fraundor
  • Bemidji, MN
Posted

Looking into the future here, doing taxes now. Wondering if it’s worth claiming depreciation now

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Anthony Wick
  • Rental Property Investor
  • Ankeny, IA
3,901
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Anthony Wick
  • Rental Property Investor
  • Ankeny, IA
Replied

The IRS assumes you took depreciation (over 27.5 years on a rental property). Therefore, it is REQUIRED for you to recapture said depreciation when you sell, whether or not you actually took the depreciation. In other words, not taking depreciation is a gigantic mistake, and will cost you a lot of money. 

*Note: I am not a CPA, and would highly recommend hiring a CPA. And if this rule has changed, I welcome a CPA to correct me on this. 

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