I was told not to take depreciation on my rental property, as it would reduce my cost basis for when I want to sell the property later. What taxes are involved when selli

[picture03]

What taxes are involved when selling rental property in Snohomish County? Why is taking depreciation for a rental a bad idea? (I need to see the answer in writing...)

[jerry2000]

You were very poorly advised. You can not avoid recapture of depreciation by not claiming it. Why? because when you sell the IRS will recapture any depreciation that was allowed "or was allowable" . What that means is that whether you took it or not, it will be recaptured.
For more information, read this IRS document, the interesting part is down near the very end called "Claiming the Correct Amount of Depreciation"

https://www.irs.gov/publications/p527/ch02.html