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How can the owner get a tax write off if the owner already depreciated the building? Isn that double dipping and getting twice the tax benefit from the same asset?

April 26, 2017benefit building depreciated dipping double owner tax twice write

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How can the owner get a tax write off if the owner already depreciated the building? Isn that double dipping and getting twice the tax benefit from the same asset?

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A. Yes, under IRS Code Section 170(e), if the asset is classified as a “real estate” asset under IRS Code Section 1250, which is typically a building and its structural components. So, if an owner purchased a property 30 years ago and fully depreciated it, the owner took the full advantage of the GAAP tax benefits, and now the owner can write off the asset as a charitable contribution through 561 Exchange.