Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Then what's the point of depreciating if you have to "pay it back" later? You save now but pay that the only (spurious) "benefit"?

Well, there is a time value to money. Deductions today that get repaid many years down the road are worth something.

Also, there's no guarantee that you can sell something for more than it's basis after depreciation. Real estate is typically the main asset that bucks this trend - but it doesn't always do so. That would be one lesson learned in the opening decade of the 21st century. And in the 1980s. And in the 1930s. And probably once or twice more that I'm not remembering at the moment.

Print the post  


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.
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.