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Level 2
posted Jan 29, 2021 6:50:35 PM

Should I stop depreciating my rental property for this year if I see that in any case that depreciation will not generate any savings? I could then start it again later?

I have been depreciating it for many years. Still have 7 years or so left. I won't save anything this year from depreciating it. Hence my question! Thanks!

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1 Best answer
Level 15
Jan 29, 2021 8:54:13 PM

You cannot stop and restart depreciation deductions unless you actually take the rental property out of service.

 

If the property is still being used as a rental, the depreciation deduction for this year will be subject to recapture when the property is ultimately sold regardless of whether or not you took the deduction.

1 Replies
Level 15
Jan 29, 2021 8:54:13 PM

You cannot stop and restart depreciation deductions unless you actually take the rental property out of service.

 

If the property is still being used as a rental, the depreciation deduction for this year will be subject to recapture when the property is ultimately sold regardless of whether or not you took the deduction.