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Nesgroup address: misc.invest.real-estate - Date & Time for the message: 2 Jun 2005 15:48:42 -0700
/ Author of the message: ron.restivo@rdmd.ocgov.com |
Title of the message: |
Re: Depreciation question
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Text of the message: |
First, the depreciation deduction no longer really lowers your cost basis. Since 1997 the rules changed. You keep track of the accrued deprecation, then when you sell the property you pay tax on the gain at the 15% long term cap gain rate PLUS you recaputure the depreciation (that new IRS speak) and pay tax on the recaputured depreciation at a flat 25%. Back to your question, now that I think about it, I'm not sure. Sorry. Under the pre-1997 rule you would lower your cost basis by the depreciation. When you sold, any depreciation not deducted on your taxes gets added back on to the cost basis. I think the same thing happens; you would only recapture depreciation you actually deduct on you return. Maybe someone else has a better answer?? . |
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Estaplace.com is one the Ceglia Giovanni projects, started on 20 July 2005, and online since 20 August as a real estate platform for listings, mainly operating on the Italian and American/English market in the Internet, Estaplace would like to become the point of referiment for home sellers and home buyers, a site where private owners or real estate agencies can have the possibility to show their offers to the world. Estaplace.com is only one of the Giovanni Ceglia's sites. Everyday Giovanni Ceglia works to improve new Internet tools and services for online marketing and business. Estaplace.com will become the biggest portal for real estate business and investments online.