Discussion:1031 exchange depreciation
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Discussion Forum Index --> Tax Questions --> 1031 exchange depreciation
| 7 March 2006 | |
| depreciation of replacement property acquired in a 1031 exchange (39 year non-residential rental). election made under sec. 1.168(i)-6T(i) allows property to be depreciated as if acquired entirely on the replacement date (as opposed to carryover basis of disposed property being depreciated using original date of acquisition and method). What are the advantages (other than simplification of the depreciation computation) and disadvantages (if any) of making this election? | |
| 7 March 2006 | |
| The advantage is it makes it simpler.. The disavantage is that in most cases the old basis is now taken over a longer period of time giving you a smaller write off. | |
| 16 January 2008 | |
| 1.168(i)-6 It is no longer temporary and did not expire. | |
| January 16, 2008 | |
| Thanks, Solomon. I must be going to the wrong update classes. | |
| January 16, 2008 | |
| Solomon and PVVCPA,
Off topic, and irrelevant until after tax season - but which update class do you utilized? I've used AES - Accountant's Education Services, out of Denver - for a couple of years. Seems good, but I don't really have anything to compare with....and I always learn a LOT. | |
| January 16, 2008 | |
| Belle, I encourage you to start a whole new thread for this.
Mine is done by a local former CPA who works this region. Probably not appropriate for you. A lot of other people in my office go to Spidell's annual update. 4 hours of fed Update & 4 hours of California. They really like it. | |
