Go Zone Depreciation Recapture

[Carl Watson]

I have a couple that purchased a duplex in 2010: $265,000.


Go zone depreciation was taken in 2010: 50% of property value.  Probably land was about 10%, so the property about 238,500, thus 50% depreciation would be around 119,250. 


Outstanding loan as of today: around 168,000, and they are taking an additional depreciation every year.


ARV: 170-175k

Rents: 950 each unit

Would a long term rent to own help minimize the depreciation recapture for the seller? If not, what will?