Lot of $$ / Buy vs. Rent
11-27-2024 | 04:24 AM
#171
Gets Weekends Off
Joined: Feb 2008
Posts: 20,880
Likes: 194
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.
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.
11-27-2024 | 07:19 AM
#173
Gets Weekends Off
Joined: Apr 2007
Posts: 5,617
Likes: 633
Claim the maximum of what is allowed under the law. Any less and you are making a donation to the government. I don't understand those who under claim because they fear an audit. I also enjoy when criminals get caught abusing what is effectively the honor system. It's like that guy who takes a candy bar from the sim snackroom and doesn't drop a dollar in the box.
