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posted Jun 1, 2019 12:46:34 PM

Discontinue/stop claiming depreciation ?

I have claimed depreciation for rental properties for many years. Due to the high depreciation recapture tax rate (25%), can I discontinue/stop claiming depreciation this year?   Is any significant tax impact?

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Level 9
Jun 1, 2019 12:46:34 PM

You can stop, but you will still have to pay depreciation recapture on all the depreciation you have taken or were required to take.  So it will not help you to do so, and you will lose the depreciation benefit.  You can't get out of paying the full amount of depreciation recapture on sale.

1 Replies
Level 9
Jun 1, 2019 12:46:34 PM

You can stop, but you will still have to pay depreciation recapture on all the depreciation you have taken or were required to take.  So it will not help you to do so, and you will lose the depreciation benefit.  You can't get out of paying the full amount of depreciation recapture on sale.