The calculation of depreciation recapture involves determining the difference between the sale price of the asset and its adjusted basis. The adjusted basis takes into account any depreciation claimed in previous years. This adjusted basis is the cost of the asset minus the accumulated depreciation tak...
and they’re caught off guard by the higher-than-expected tax bill. To help avoid this, the following discussion provides an overview of the depreciation recapture rules
Capital gains fromreal estate investmentsmay include the recapture of depreciation. The recapture amount of depreciation is often taxed at a maximum rate of 25%, with the non-recapture amount taxed at the prevailing capital gains rate.14
and they’re caught off guard by the higher-than-expected tax bill. To help avoid this, the following discussion provides an overview of the depreciation recapture rules