Hi,
In 2020, I began depreciating assets for two rentals. I fully expected to want/be required to depreciate them this year...
However, when I added the depreciation this year it INCREASED the amount I owe the IRS (from $30 to now $300). So three questions:
1. Now that I started depreciating, do I have to continue?
2. If I have the option not to depreciate, is it in my interest to do it despite the increased tax cost this year?
3. To throw in a new wrench...I will be selling one of the two properties this year (only rented 2 years). With this info, does is sway question 2 above?
