re: Help me understand depreciation on a rental property

quote:

---

Also your depreciations from rental properties can only go against rental income. It can only go against your entire income from other jobs if you or your wife have REPS (real estate professional) status

---

I think this is your answer. I think you (or your wife) need to work 750 hours (?) in a year on bonafide real estate investments to qualify as a real estate professional. Obviously, 750 hrs is only credible for a sizeable real estate portfolio.

Also, others have mentioned it, but think of the depreciation "write-off" as a deferral of taxes, not a permanent dodge of the tax man. When you sell, you will be taxed on capital gains of the fully depreciated property.