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Go Zone Depreciation Recapture
I have a couple that purchased a duplex in 2010: $265,000.
Go zone depreciation was taken in 2010: 50% of property value. Probably land was about 10%, so the property about 238,500, thus 50% depreciation would be around 119,250.
Outstanding loan as of today: around 168,000, and they are taking an additional depreciation every year.
ARV: 170-175k
Rents: 950 each unit
Would a long term rent to own help minimize the depreciation recapture for the seller? If not, what will?