When you sell a rental property is special bonus depreciation reduce your basis for gain loss purposes?
In a sense, yes. All depreciation is recaptured and taxed in the tax year you sell the property.
What about section 179?
What kind of rental property is this? It matters, because residential rental real estate is not eligible for any SEC179 deduction. But some assets are eligible for the Special Depreciation Allowance.
Repairs?
While depreciation is on line 18 of the SCH E, repairs are an expense that are included on line 14 of the SCH E. Once repairs are claimed/deducted, that's it. The deduction is permanent, while depreciation of any type is not permanent.
