Originally Posted by Gunfighter (Post 3855955)

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.

Originally Posted by sailingfun (Post 3856093)

Audits will probably be unlikely the next 4 years.

Originally Posted by sailingfun (Post 3856093)

Audits will probably be unlikely the next 4 years.

Originally Posted by UGBSM (Post 3856101)

Even so, that should not influence what you claim on your income tax return don't you think?