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I rent out a condo that I purchased two years ago. I make a small profit. It may be advantageous for me to depreciate the condo. This presumably will increase the capital gains that will occur when it is sold. My question: Does the IRS insist that depreciation is taken or can I choose not to depreciate it?

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Does the IRS insist that depreciation is taken or can I choose not to depreciate it?

Yes, the IRS will tax you on depreciation recapture whether or not you actual claim the depreciation. According to this article:

not depreciating your property will not save you from the tax -- the IRS levies it on the depreciation that you should have claimed, whether or not you actually did.

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