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Path: utzoo!utcs!lsuc!pesnta!qumix!len
From: len@qumix.UUCP (Leonard Labar)
Newsgroups: net.taxes,net.invest
Subject: Q. effects of Reagan tax law on depreciation.
Message-ID: <1056@qumix.UUCP>
Date: Tue, 15-Oct-85 11:03:33 EDT
Article-I.D.: qumix.1056
Posted: Tue Oct 15 11:03:33 1985
Date-Received: Wed, 16-Oct-85 11:23:49 EDT
Distribution: net
Organization: Qume Corp., San Jose, CA
Lines: 12
Xref: utcs net.taxes:850 net.invest:802

Does anyone have a feel for the effects of the Reagan tax law changes
on depreciation for investement property?  I own a home plus 1 rental
and am considering buying more rentals.  My tax man tells me the ACRS
depreciation schedule has been changed to 16 years, will be 19 years
next year, and 26 years the year following.  To me it looks more and
more like "straight line."  My present strategy is to hold on to the
properties rather than sell in 5 or 6 years.  However, I also want to
retire early which means I'll need the higher depreciation early in the
game.  My tax man advises to buy another property this year but I'm not
sure if I can raise the rent next year to cover my expenses if property
values drop like predicted.  Confusing times...  If someone has figure
out the new "ACRS" schedule could they please post it to the net?