- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
I do not want to depreciate my rental property, but I don't know why Turbo tax makes me. How do I undo the depreciation?
Topics:
June 15, 2020
3:28 PM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Investors & landlords
You don't have a choice. You are required by law to depreciate rental property.
June 15, 2020
3:52 PM
Anonymous
Not applicable
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Investors & landlords
If you don't take the minimum depreciation that you're supposed to take, the tax laws say when you sell you must reduce the basis for purposes of computing gain/loss by the depreciation you took (allowed) and any additional that you should have taken (allowable). so you will end up paying taxes on that amount even though you never deducted it. say it's $4000, your tax bill could go up by $1000 and that's ignoring any state taxes. this is not unique to real estate. it applies to all depreciable property.
June 15, 2020
5:05 PM
460 Views