[gnicholas]

What can an individual depreciate that offsets against hundreds of thousands of dollars of wages that are taxed as ordinary income? I get how depreciation helps you if you're renting out apartment buildings, but the tax code revamp of 1986 got rid of the passive investment tricks that allowed doctors/dentists/etc. to offset their ordinary income with depreciation deductions.

Your point about your personal tax rate going down makes sense. Congrats on the impending retirement!

[abofh]

I still have an apartment in the US that's gone from being a primary residence to an investment property - so straight line depreciation on the asset offsets the rental income, then the mortgage interest and SALT deductions still exist on the property itself. It doesn't offset hundred/s/ of thousands of earned income on its own, but the left pocket takes the loss, the right pocket takes the gain so to speak. My first (income) taxable dollar to just above 200k when combined with the FEIE and everything else along the way. There will be capital gains to be paid if the housing market ever recovers and I sell without replacing, but in the mean time it keeps the cash in my accounts.