Posted by Allen Bailey on March 30, 2008 at 13:45:03:
In Reply to: Cost segregation Gets a Boost? posted by Kenneth Hocking on March 26, 2008 at 09:05:52:
If you are only going to own the house for a short period of time and use cost segregation to speed up your deductions, then you may create a higher tax bill when you sell the house.
Remember the tax rate on recaptured depreciation is 25%, but the long term capital gain rate is currently 15% or 5%. So the tasty depreciation now may cause you a higher tax rate when you sell!
You should ask your tax advisor about this scenario as well.
- Can 179 Deductions be rolled forward 1031? Kenneth Hocking 21:05:59 03/30/08 (0)