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Realized vs Unrealized Debt: Rule Two by Another Name?

Beginning Balance

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Investing in Real Estate

When you dispose of the asset, a lot of times you get rid of it, you're kind of here. You take a gain on the asset, you bring the accumulated depreciation into it. And that's why people are screaming about how great depreciation is for real estate. It lets you take the capital, lets you defer the taxes,. Your basis is just simply going down at the same rate as that deferral. So when you sell the asset, it,you're just having to pay it later. But it's a more favorable rate than an income rate.

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