Carl
Level 15

Business & farm

Just keep in mind that when you sell a deprecable asset you are required to recapture all depreciation on that asset in the year you sell it, and pay taxes on it. That recaptured depreciation adds to your AGI and has the potential to put you in the next higher tax bracket.

When it comes to what I"m required to do by law (or can legally get away with without breaking any laws) I'm going to do that which requires me to take the least amount of depreciation possible. That way in the year I sell the asset, the less depreciation I am forced to recapture, the better.