When you sell a property for more than its original purchase price, the sale price gets split into two parts. First, any profit up to the amount of depreciation you've claimed in previous years gets the maximum 25% recapture rate. Any profit above your original purchase price qualifies for...
Section 1250 is calculated as the lesser of two amounts. The first amount is the excess of accelerated depreciation claimed on real property over what would have been the allowable amount under a straight-line method. The second amount is the gain realized upon disposition. What Triggers Depreci...