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Subject:  Depreciation Date:  4/23/2008  9:24 PM
Author:  airahcaz Number:  100532 of 127753

I've converted my primary into a rental house, having moved out of it. Cause the primary loan has adjusted upwards, the rent does not cover the mortgage, insurance, and taxes. My question is one on depreciation. If I don’t have any positive income, what is the benefit of Depreciation on my taxes? Also, the IRS mandates this, so I have no choice? I really don't care (or see why I should care) to carry forward deprecation losses year over year, and am concerned that this depreciation will not help my situation when I sell the house. (assume no 1031)

Please, I know that an investment property that has negative cash flow is not a good 'investment', but suppose I want to hold on and sell for appreciation in a few years… I am not a real estate professional.

Essentially, for someone with no postive income form the rental, is the sole benefit of carrying depriation losses forward that of offsetting appreciation gains when time to sell, creating a wash?

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