Does anyone not claim capitol depreciation on there income taxes for there rental properties and why?
Or better yet what is your reasoning for or against claiming the deduction?
I need to determine the actual advantages verses disadvantages concerning my particular situation.
This is a new property for me and the last one I will own. My present plans are to sell this one in 10 years at age 65. I will be retiring from full time employment at the end of this year with a 1/3 reduction in pay. My income may possibly fluctuate some what over the next 5 years due to other temporary sources as well as I expect the rental income to increase and some deductions (interest) will be reduced.
I will also likely provide a substantial VTB to the next owner possibly up to 75% of purchase.
What are the tax implications at time of sale and is it possible to determine the best approach at this initial stage on this property?
Or better yet what is your reasoning for or against claiming the deduction?
I need to determine the actual advantages verses disadvantages concerning my particular situation.
This is a new property for me and the last one I will own. My present plans are to sell this one in 10 years at age 65. I will be retiring from full time employment at the end of this year with a 1/3 reduction in pay. My income may possibly fluctuate some what over the next 5 years due to other temporary sources as well as I expect the rental income to increase and some deductions (interest) will be reduced.
I will also likely provide a substantial VTB to the next owner possibly up to 75% of purchase.
What are the tax implications at time of sale and is it possible to determine the best approach at this initial stage on this property?