Originally Posted by Gunfighter

1) Depreciation recapture tax is a lower rate than income tax. Taking depreciation is tax arbitrage and an interest free loan while waiting to pay the tax.
2) IRS assumes you took depreciation even if you didn't. You will pay depreciation recapture regardless. The only option is bonus or accelerated depreciation.
3) Having taken millions in depreciation over 20 years of RE ownership, I've never been audited. My time is due, but with accurate depreciation schedules my CPA says it's about as exciting as a V1 cut in the sim.