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Old 09-17-2016, 09:00 AM   #21
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Looks like the bad news is that all depreciation must be paid back at 25% no matter what. Nothing can be set against it.
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Old 09-17-2016, 11:14 PM   #22
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Originally Posted by Amethyst View Post
Looks like the bad news is that all depreciation must be paid back at 25% no matter what. Nothing can be set against it.
Except death (unless I'm mistaken, in which case I may decide not to do this )
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Old 09-18-2016, 09:09 AM   #23
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Except death (unless I'm mistaken, in which case I may decide not to do this )
This is what I was wondering. If I keep my rentals until I die, will my heirs get a stepped up basis and will that wipe out the depreciation? Or will they get a stepped up basis but still have to recapture the depreciation? I assume (hope) that they'd be fully depreciated by then. Since I'm planning to keep them for a long time, that may be the situation we have.
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Old 09-18-2016, 09:24 AM   #24
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Although not authoritative, a discussion over at fairmark.com seems to suggest that death would eliminate the depreciation recapture for properties that have used the MARCS method of straight line depreciation.

-gauss
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Old 09-18-2016, 12:28 PM   #25
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Although not authoritative, a discussion over at fairmark.com seems to suggest that death would eliminate the depreciation recapture for properties that have used the MARCS method of straight line depreciation.

-gauss
Thanks for the link. Now I can die with an even bigger smile on my face. Avoiding taxes (even in death) is like the cherry on top of an already great life.
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