A 1031 exchange allows real estate investors to sell appreciated rental property, defer federal taxes, and reinvest the full proceeds into larger or better-performing assets.
Home office depreciation can reduce taxes today, but it can also affect taxable gain later. Understanding how depreciation and recapture work together is key to long-term planning.
Skipping home office depreciation does not automatically avoid recapture. IRS rules may still reduce your basis and increase taxable gain even if depreciation was never claimed.
