Discussion:Depreciation at sale of property
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Revision as of 20:43, 4 August 2009
Discussion Forum Index --> Advanced Tax Questions --> Depreciation at sale of property
Discussion Forum Index --> Tax Questions --> Depreciation at sale of property
| 4 August 2009 | |
| Client sold property (Motel) in 2008. An operating loss of $(53,645) is evidenced as his portion (51%)through this LLC Partnership. This includes depreciation, of $34,945. He also has a capital gain of $270,572 on the sale of this property. My thought is to remove the depreciation thereby decreasing the loss to Sch E and increase the gain to Sch D, thereby reducing his overall tax liability as this would reduce tax paid on ordinary income and increase tax paid, at the lower rate, on long term capital gains. The property was sold September 1, 2008 and depreciation has been calculated through the date of sale. Taxable income on the 1040 approaches $1,000,000.00 with the effective tax rate at just over 18%. Uncertain as to whether an election is available to take or not take depreciation for 2008 within the LLC, Partnership return. MPF | |
