Posted by Marc on May 15, 2000 at 13:47:12:

OK, thanks; I understand. I haven’t gone into this too much yet, but I assumed that the time value of money was factored into these depreciation schedules. Sounds like it isn’t. In some cases the IRS does factor this in however. For example, when I was calculating how to write off the points used for the mortgage I found that this was done by adding a fraction of the points each year to the base used to depreciate the property. The amount I would add increases each year by a factor equivalent to the %interest I am paying; therefore in this case there is no disadvantage paying over time.

Marc