Refi till you die to renew depreciation?

[Mary Jay]

Hi guys,

1) Do I understand it correctly that if I owned a property for 27.5 years and cant claim  depreciation on that property anymore, If I refinance, I can start claiming depreciation again?

Or

2) If I sell this property then I will pay back the depreciation, but if I refinance I wont have to pay back the depreciation?

Are any of those statements correct?

[Christopher Smith]

1) No there is no depreciation "restart" as there is no new investment just additional borrowing against presumably fully depreciated property.

2) If you do sell you will need to recognize the depreciation recapture, if you refinance you will not have any immediate depreciation recapture. The depreciation recapture will be preserved for potential future recognition in the event you do sell the property.