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Because the property is income producing therfore it is a business asset that can be depreciated. The problem lies in when I sell it, I have to recapture that depreciate. There are a number of ways to defer that problem but at some point it will come back to me.

But my question is, unless the property is losing value, how can it be depreciated?

I understand depreciating certain assets in a business, like a computer or delivery truck, but those are items that lose value over time, while real estate typically gains value provided the neighborhood is in a good area.
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