Answer
Jul 24, 2025 - 05:38 PM
You're confusing things. When I'm selling a property, I'm not taking depreciation because I'm selling said property. You're only depreciating an asset while it's in service. If I'm selling it, it's not because I'm getting rid of it. If I'm selling it mid-year, I would take the depreciation through the six months for the first six months of it, and then you're selling it and whatnot. If you know you're going to sell it, you want to be as conservative as possible with depreciation because you're just going to recapture it. And depending how you sell it, you can actually – like depending on the sale price and what you purchased it for and all of that, it gets a little bit more complicated. Your depreciation recapture can actually be more expensive than the deduction that you got from it. And so when you know you're going to sell something in the next few years or something, you really want to be very conservative with depreciation. If it's long-term costs, depreciate the crap out of it. But that's when we think, you know, like we have all these properties that we've depreciated and stuff like that. And you're like, now I'm 80 years old and I want to reduce my portfolio. There's different strategies to go about it so that we don't have a ton of gain and a ton of tax. Like, you just might need to, you know, do a 1031 and get into the right type of strategy so that you can reduce things.
