will there be an increase to the property tax on the rental property because $50K on remodeling was reported on the tax form question?
The IRS has nothing to do with your property taxes. Your property taxes are determined by your local county property tax appraiser. The property tax appraiser could (literally) care less what you report on your federal income tax return.
what is the use of reporting it as depreciation?
Federal law doesn't give you a choice. Federal law says you are required to depreciate your property, along with any qualified property improvements. If you don't depreciate the property improvements, then in the tax year you sell or otherwise dispose of the property, you'll be inviting the IRS to audit you with open arms. The taxes, fines and penalties will have the potential to wipe out any gain you may realize on the sale.... yet you'll still pay taxes on that gain because fines and penalties are not tax deductible.
Seems like a loose loose situation.
No disagreement there. If the can't shove it down your throat now , they'll skewer it from the other end later.
