Depreciation Write-Offs: Tax Basis and Property

depreciation write-offs: That means many real estate investors now own properties that are worth way more than their tax basis, according to Market Watch. That's especially likely with a rental property for which you've claimed depreciation deductions over the years. Prices in some areas have surpassed those levels and are still going up. Those depreciation write-offs reduced your tax basis in the property, resulting in a bigger taxable gain if you sell. Why Because simple inaction or arranging for a tax-free Section 1031 exchange, instead of a sale, could be tax-smart strategies. Here's the message If you are a well-seasoned individual who owns real property that would trigger a big taxable gain if sold, please think long and hard about not selling. (news.financializer.com). As reported in the news.