TaxGuyBill
Level 15
03-06-2025
08:24 PM
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I'm going to partially disagree with Jeff's answer.
While the depreciation (whether claimed or not) does lower Basis, the §121 exclusion can exclude that gain if the depreciation was not actually taken (if the total gain is within the §121 limits)
With that being said, the depreciation usually lowers both income tax AND self-employment tax, so taking the depreciation is still best.