Can I Not Claim 'Depreciation' on my rental Property?

[Raj Pal]

Hi,

I am new to Rental & Not familiar with taxes.

I don't see much value by claiming the depreciation and as shown below, the allowed deductible rental loss is very less.

I want to understand the consequences for not claiming. Can some one please help me understand? Thanks

[Russell Brazil]

Its not a choice as to whether to claim. You have to pay depreciation recapture on the sale whether you claimed it or not.

Now, you might be able to use a higher or depreciation number based on how you calculate the land vs building value. I personally like lower depreciation amounts as I like to minimize that recapture on sale.

But consult with a real estate CPA like @Natalie Kolodij for best strategy.