Investors & landlords

You misread my posting ... recaptured income is taken at a higher tax rate that is why you don't want to depreciate things more than required so you would pay more in taxes later by getting a deduction now.  And the IRS rules say you MUST use the lower of the cost basis or the FMV at the time of conversion so you really don't have a choice on which value to use. 

 

 

@Carl 

 

Care to weigh in ???