Can I elect not to deduct depreciation on a rental property? My income is low (I am retired) so I do not need the deduction because my only income is social security.

johnchristina833 · ‎June 4, 2019

PaulaM · ‎June 4, 2019

No. The depreciation will be recaptured when you sell your rental whether or not you take it. The IRS will assume you have taken the deduction and tax you on a portion of it. You will need the accumulated depreciation amounts when you sell in order to compute gain/loss.

Enter the rental under the asset section for depreciation to be calculated over its useful life even if you receive no benefit from it now.

https://www.irs.gov/pub/irs-pdf/p527.pdf

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View solution in original post

PaulaM · ‎June 4, 2019

No. The depreciation will be recaptured when you sell your rental whether or not you take it. The IRS will assume you have taken the deduction and tax you on a portion of it. You will need the accumulated depreciation amounts when you sell in order to compute gain/loss.

Enter the rental under the asset section for depreciation to be calculated over its useful life even if you receive no benefit from it now.

https://www.irs.gov/pub/irs-pdf/p527.pdf

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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Can I elect not to deduct depreciation on a rental property? My income is low (I am retired) so I do not need the deduction because my only income is social security.