3 ms·
It's worth noting that if you depreciate like this, it counts against the basis of your property. So in your example, if you depreciated the building to $0 and
by positr0n 3y ago
It's worth noting that if you depreciate like this, it counts against the basis of your property.
So in your example, if you depreciated the building to $0 and then sold the property for $3M you'd pay capital gains taxes on $2.5M.
Unless you die.. then I'm pretty sure your heirs inherit it with $0 tax at a stepped up basis of $3M? But I'm not sure on that one.
- sokoloff 3y ago> It's worth noting that if you depreciate like this, it counts against the basis of your property. It's also worth noting that if depreciation was allowable and you didn't take it, it still decreases the basis. Your basis is reduced by depreciation deductions allowed or allowable. https://www.irs.gov/publications/p551#idm140622807378608 https://www.irs.gov/publications/p551#idm140622807378608 If you don't want to take depreciation (for whatever reason), you need to change the facts and circumstances such that depreciation would not be allowable under the facts.