4 ms·

If you didn’t claim depreciation previously then why is it depreciated?

• jedberg 6y ago
  The IRS says that the item depreciates whether you claim it or not. It is in your best interest to claim it, because when you sell the item, they assume the depreciated value. This comes up when you own rental houses. If you sell the house later, they reduce the base price by the assumed depreciation of the structure, whether you took the deduction or not.
  • sokoloff 6y ago
    Tax code deducts from your basis in an item the "depreciation allowed or allowable". For personal property [such as typically sold in a garage sale], there is no depreciation allowed or allowable, so your basis in the good is whatever you paid for it.
  • nrmitchi 6y ago
    > This comes up when you own rental houses. Yes, this is true, but there is a massive difference between a real estate investment, and a garage sale.
• IncRnd 6y ago
  Time depreciates.