Timeline for Is a depreciation claim on a rental property basically always worth it in Canada, given stable income?

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when toggle format	what		by	license	comment
May 2, 2022 at 19:07	vote	accept	Eugene O
May 2, 2022 at 19:07	comment	added	Eugene O		Thank you very much for such a detailed answer! I guess it's the fact that this "recapture" is treated as ordinary income, and not as capital gains, was the main fact I was missing.
May 2, 2022 at 14:34	history	edited	Grade 'Eh' Bacon	CC BY-SA 4.0	added 4 characters in body
May 2, 2022 at 14:28	history	edited	Grade 'Eh' Bacon	CC BY-SA 4.0	added 1 character in body
May 2, 2022 at 14:12	comment	added	Grade 'Eh' Bacon		Going beyond the written examples in my answer, you should consider for yourself what your plans for the property are [how long before you intend on selling], and what your taxable income situation would be now vs then. In some cases it can be quite simple to show that you shouldn't claim depreciation. Example - if you have a 35% marginal tax rate for 2021 based on your tax return you are going to file today, and you already sold your rental property in February 2022, and you project to be in a 40% tax bracket 2022, then the tax savings today would be worse than the tax bill in 10 months!
May 2, 2022 at 14:09	history	answered	Grade 'Eh' Bacon	CC BY-SA 4.0