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How does this work?

So the RE and landlords can claim huge amounts of depreciation and bonus depreciation in their PnLs and pay little to no tax. This is on upgrades they’ve done to the property etc. However properties are being listed at 400% appreciation with them claiming that the paltry beatification they did is worth that much.

Is there some kind of tax recapture at the time of sale to offset the 400% appreciated value they pulled out of their asses?

submitted by /u/thentangler
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source https://www.reddit.com/r/RealEstate/comments/yz6f2y/how_does_this_work/
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