@AmeliesUncle wrote:
@Hal_Al wrote:
At first, it seems too good to be true and open to abuse ... When the taxpayer sells he'll have that much more depreciation to recapture .
It's just the opposite. Because you need to restart the 27.5 years using the very-low Adjusted Basis, you will be claiming LESS depreciation each year.
I think it's one of those things that can cut either way. Depreciation is often where the real profit is with rentals. @Carl has had a lot to say on this in the past. Depending on the circumstances, claiming less depreciation per year for more years may be more of an advantage than claiming a higher amount for the last 4 years and then losing it. I'm certainly not qualified to say which is better in a given scenario, and I'm sure I don't understand all the nuances.
