ST Alpha - "Yes. And you can expense/depreciate improvements too. And then..." (Reading a Post)

SlickerTalk
Search Archives
The Leaderboard
The FAQ

Down to Post

Backboards:

Posts: 159

Yes. And you can expense/depreciate improvements too. And then...

Posted by ceregon Nov 16 '11, 08:19

even if you sell it and have to pay taxes based on the lower basis (which depreciation reduces), the rate for that is 15%, which is much lower than the normal income tax rate that you pay on income. So you depreciate and get 30something% of a non-cash expense, and it only costs you 15% years later, after you have had the use of the money for who knows how long.

Responses:

[deleted] 5
- one-time exemption. you're correct. -- nm - foolish prophet Nov 16, 08:24 4
  - [deleted] 3
    - yes, and as long as you meet the other tests for the exemption - tRuMaN Nov 16, 08:27 1
      - Don't you have to have actually occupied it for 3(?) of the last 5(?) years? -- nm - MojaveMeg Nov 16, 08:28
    - I believe this to be true. (I am not a CPA, however.) -- nm - foolish prophet Nov 16, 08:27

Post a message top

Yes. And you can expense/depreciate improvements too. And then...

Replies are disabled on threads older than 7 days.