There seems not to be any information about what happens to a rental property if you decided to keep it beyond the 27.5 years of depreciation.
The question is, if I decide to keep a rental property for the next 27.5 years as a retirement investment. The mortgage will eventually be paid off and then it would be pure profit. I currently take the standard depreciation deduction on the home which is divided over the next 27.5 years. At which point you can no longer depreciate value.
However, if I continue to rent the home, I will be upgrading and maintaing over the years. So wouldn't it make sense that I could continue taking the tax deduction beyond 27.5 years?
I am struggling to wrap my head around this tax code. Any suggestions or help would be appreciated.
Thanks!
Read more: Can you deduct a rental property after its depreciation expires in 27.5 years?
