I just found out that when I sell, I have to recapture it and pay 25% tax on that. So why should I even use depreciation?
2007-03-06 09:28:27 · 4 answers · asked by Anonymous in Business & Finance ➔ Small Business
While you are maintaining that property (before selling) it helps to lower your tax costs. You could get a better idea from these two articles:
Enjoying Rental-Property Tax Breaks (an excerpt)
http://www.dummies.com/WileyCDA/DummiesArticle/id-2418.html
Are you Taking Full Advantage of Depreciation Deductions on your Rental Property?
http://www.boston.com/business/taxes/articles/macpa/new_2005/AreyouTakingFullAdvantageofDepreciationDeductionsonyourRentalProperty/
2007-03-06 09:47:00 · answer #1 · answered by mktgurl 4 · 0⤊ 0⤋
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2016-07-19 00:42:27 · answer #2 · answered by Jasper 3 · 0⤊ 0⤋
Depreciation is basically an accounting gimmick that allows an individual to spread out the cost of the major purchase over a period of time.
By charging the depreciation expense over a number of years you wind up paying less taxes for those years (shielding your income). That's why you have to recapture part of it when you sell.
Paying taxes is a certainty...Pay it now or Later...but PAY.
2007-03-06 09:38:14 · answer #3 · answered by Ronatnyu 7 · 0⤊ 0⤋
Rent To Own Homes : http://RentToOwnHome.uzaev.com/?SgiQ
2016-07-12 08:10:25 · answer #4 · answered by Anonymous · 0⤊ 0⤋