Thanks for the tax break government

Discussion in 'Politics' started by OohPooPahDoo, Jan 24, 2012.

  1. OohPooPahDoo
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    OohPooPahDoo Gold Member

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    Since we bought a duplex in the "Gulf Opportunity Zone" this past year, we can elect a bonus depreciation of 50% of the value of the rental side - or 25% of the value of the house.

    So according to the IRS, I took a 25k loss this year on rental property. Next year will also be close to that as there is plenty loss left to carryover!

    Woo hoo!
     
  2. LibertyForAll
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    LibertyForAll Senior Member

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    cool story bro!
     
  3. Soggy in NOLA
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    Soggy in NOLA Platinum Member

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    If you had any integrity at all, you'd NOT take the loss and pay your fair share of taxes.
     
  4. OohPooPahDoo
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    OohPooPahDoo Gold Member

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    Hey genius, I have to pay it back in depreciation recapture if I ever sell the property. And if I never sell the property, that same amount would get depreciated over time anyway.

    In fact, since my marginal tax rate is 15% but the recapture is 25%, the government actually winds up ahead if I sell the property any time soon. If I sold it next year, for instance, government gets back 25% of 25k but I only received 15% of 25k in tax benefit, netting government $2,500



    Big business gets deprecation hand outs all the time. I fail to see what's wrong in the little guy getting them, too.
     
    Last edited: Jan 24, 2012

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