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From: peckham@cornell.UUCP (Stephen Peckham)
Newsgroups: net.invest,net.taxes
Subject: Re: Reagan tax plan vs. Real Estate (depreciation)
Message-ID: <3379@cornell.UUCP>
Date: Thu, 25-Jul-85 14:20:58 EDT
Article-I.D.: cornell.3379
Posted: Thu Jul 25 14:20:58 1985
Date-Received: Sat, 27-Jul-85 00:15:37 EDT
References: <815@qumix.UUCP> <780@burl.UUCP>
Distribution: net
Organization: Cornell Univ. CS Dept.
Lines: 14
Xref: watmath net.invest:717 net.taxes:871

> 	The moral of the story being that
> 	accelerated capital recovery may be advantageous in the
> 	short term, [but] for property that in reality appreciates, it
> 	will bite you in the wallet upon sale.

Not really.  If you can deduct $1000 one year, but have to add $1000 to
your income the next, you're better off than if you had had neither the
deduction nor the extra income.  The net effect is to delay by one year
payment of tax on that $1000.  In the meantime, you're earning interest
that would have gone to taxes.

Steve Peckham / CS Dep't / Cornell University / Ithaca / NY / 14850 / USA
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