Reply to Is renting a place out worth it considering the Depreciation Recapture Tax?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I don't understand all the talk about "rental losses" -- I've rented my rowhouse very profitably for 11 years, and will continue to do so. We make repairs/improvements every year to write off against the rental income, but we always make $20-$30K in profit.[/quote]
So you are unable to comprehend that someone may not be in a situation where they generate a profit from their rental? And that their inability to deduct depreciation from their income and the reduction in basis when they decide to sell will further complicate the situation? [/quote]

It sounds like the OP will make a good profit and won't need to deduct depreciation to make it work.[/quote]
If the profit is greater than depreciation - true. If the profit is less than the depreciation, and she cannot deduct depreciation from the ordinary income, then it will come down to the difference between net income from the property vs. capital gains tax on the annual reduction in basis.[/quote]

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