AOPA Plane Giveaway and Taxes

Robert M. Gary wrote:
You come out ahead because a dollar today is better than a dollar
tomorrow. However, in the end, the thing will depreciate as much as it
will depreciate. Taking accelerated depreciation just means you can
capture that depreciation faster. Its just a paperwork thing. When you
sell it, any gains get recaptured and you end up paying back any
acceleration.


Unless tax rates have changed since I had depreciable property about
two years ago, you may also come out ahead because the depreciation
recapture rate is 25%, but when you were depreciating you may have been
taking the depreciation deduction against income in a higher bracket
like 28% or 33%.

Of course as noted elsewhere in this thread, that won't help with the
winner of this plane because you can't take depreciation against an
asset you got for free.

wrote:
Of course as noted elsewhere in this thread, that won't help with
the
winner of this plane because you can't take depreciation against
an
asset you got for free.


Your basis is the amount included in income on Form 1040.

Fred F.