Ya I think you are leaving out the concept of Deprecation Recapture. In short, if I buy the rental property for $10. Deprecate it to $0 over 27.5 years. Then S

Ya I think you are leaving out the concept of Deprecation Recapture. In short, if I buy the rental property for $10. Deprecate it to $0 over 27.5 years. Then Sell it for $20. I then haft to pay taxes on the sale of the profitable asset. ###### Depreciation recapture is a tax provision that allows the IRS to collect taxes on any profitable sale of an asset that the taxpayer had used to previously offset taxable income ###### https://www.investopedia.com/terms/d/depreciationrecapture.asp#:~:text=What%20Is%20Depreciation%20Recapture%3F,basis%20or%20adjusted%20cost%20basis https://www.investopedia.com/terms/d/depreciationrecapture.a....