alt Hacker NewsIt's true depreciation reduces your cost basis and creates a higher capital gain. But the gain can be rolled into another property with a 1031 exchange, deferring taxes. I already said this in the comment you responded to.
Homeowners get a tax exemption but only up to a certain amount in gains.
> But the gain can be rolled into another property with a 1031 exchange, deferring taxes. I already said this in the comment you responded to.
They can also keep the property forever and continue renting it out, and then never realize the gain. But in both cases that means they don't get to realize the gain -- or even recover their original principal -- except insofar as they're renting it out, and the rent is taxable income.