1031 Exchange and Capital Gains

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Name:Steven Hickox
Location:Denver, Colorado, United States

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Thursday, January 12, 2006

1031 exchange and depreciation

Question: I bought property B by refinancing property A, both  properties are rental income, can I increase the depreciation value of  property A?
Dear P:  The amount of debt on a property and the basis of that property have no relationship to each other.  Your refinance will NOT increase your basis, and therefore will NOT increase your depreciation allowance. Sincerely,

Steve Hickox
Attorney / President

posted by Steven Hickox | 4:46 AM