We have rentals and are wondering how FT would affect our bottom line? I know we would have to pay the 23% but what would happen to the rest of our deductions. As you know we take a deduction for the interest & a deduction for depreciation. The depreciation is recaptured at the time of the sale.of the property so it's not really a deduction. My spouse, always the skeptic, has prompted this question. Putting this on a personal basis makes it easier to explain the plan to others in the same situation.