Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (22) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: airahcaz Two stars, 250 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121585  
Subject: Depreciation Date: 4/23/2008 9:24 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
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?

Thanks!
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (22) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement