Many folks fail to realize that depreciation is not a permanent deduction, unless you die - which of course doesn't help *you*.
When you sell depreciable property, all depreciation taken is recaptured *and* *taxed* in the tax year you sell the property. Two thing can happen with that in the tax year you sell.
1) The recaptured depreciation is added to your AGI.
2) The increased AGI has the potential to bump you into the next hither tax bracket. Weather it does or not just depends on the numbers.
If you don't depreciate the property, that doesn't help either. In the tax year of the sale you are still required to recapture the depreciation you *should* have taken, and pay tax on it.
