Does it ever make sense to decelerate depreciation?

[Justin Brown]

We own a few SFR's and are looking to move into small multifamily. As we consider taking on equity partners I am trying to fully understand the outs on depreciation recapture. I have several questions and would love to here from experienced investors on how this works.

1. Is an MFR (8-plex) useful life considered to be 27.5 yrs like SFR?

2. Can we slow down the depreciation in the first 5 yrs to match closer to the cash flow deliver to optimize annual taxes on the this deal while reducing the recapture that will occur if sold within 5yrs?

3. In what ways can recapture be avoided other than a 1031 exchange?

I look forward to your input.

Thank you,
Justin Brown

Momentum Properties, LLC

Louisville, KY