should you always claim depreciation?

[Jesse Hodges]

Is is always a good idea to claim depreciation on your rental property for tax purposes? I recently learned that if you sell the property for more than its depreciated value, you'll owe tax on that gain through the depreciation recapture tax. That seems like that defeats the purpose of doing it in the first place.

 

[Kyle J.]

@Jesse Hodges It’s not really a question of whether or not you should take it. You have to take it. Here’s a blog post that actually addresses your exact question in more detail:

https://www.biggerpockets.com/blog/2014-07-31-four-depreciation-tax-mistakes-investors-need-avoid