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Tag Archives: depreciation

Why is depreciation important to a 1031 exchange?

Sunday, February 20, 2011

Depreciation is important in a 1031 Exchange because it is the amount of money you have taken off of your yearly taxes since you purchased the property. It is part of the formula for determining your basis when figuring out whether you will have capital gains on the sale or purchase of a property. The [...]

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Why is depreciation important in a 1031 Exchange?

Tuesday, February 1, 2011

Depreciation is a deduction you will take when you figure out the basis of the property you buying. Before you enter into any 1031 exchange of your real estate, you must figure the basis of the Replacement Property you are acquiring and see how it fits in with your financial and tax plans. Much depends on [...]

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Is the 1031 Exchange property I’m buying impacted by the depreciation of the property I’m selling?

Monday, December 27, 2010

Depreciation taken or method used on the relinquished property does not carry over to the replacement property in a 1031 Exchange. You figure the substituted basis of the replacement property, allocate the basis between land and depreciable assets and start over following current depreciation rules for the types of depreciable assets you acquire. Your CPA can [...]

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