The Money Mustache Community

Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: BORN SAVER on January 19, 2018, 03:31:57 AM

Title: depreciation
Post by: BORN SAVER on January 19, 2018, 03:31:57 AM

hey guys was just wondering if i would buy a rental property with 100% cash and not leverage my self. Am i able to claim depreciation on my taxes of that property or am i only able to do that if i have a loan on it.

Title: Re: depreciation
Post by: MaikoTsumi on January 19, 2018, 08:48:00 AM

Depreciation is not tied to a loan.

Title: Re: depreciation
Post by: kenmoremmm on January 19, 2018, 03:51:55 PM

you will lose the tax "benefit" of mortgage interest to offset your rental income.

Title: Re: depreciation
Post by: SeattleCPA on January 19, 2018, 04:10:29 PM

Quote from: MaikoTsumi on January 19, 2018, 08:48:00 AM

Depreciation is not tied to a loan.

+1

Title: Re: depreciation
Post by: SeattleCPA on January 19, 2018, 04:10:43 PM

Quote from: kenmoremmm on January 19, 2018, 03:51:55 PM

you will lose the tax "benefit" of mortgage interest to offset your rental income.

+1

Title: Re: depreciation
Post by: HawkeyeNFO on January 20, 2018, 07:50:26 PM

You'd better claim it.  If you sell the place in the future, get ready for the depreciation recapture tax, usually at 25%, WHETHER YOU TOOK DEPRECIATION OR NOT.