Deprecation Recapture is Ordinary Income. It is the sale proceeds less your "Adjusted Basis"
"Adjusted Basis" is your original cost less depreciation.
Anything OVER your original cost is Capital gains.
If you added an asset, such as siding, allocate part of the selling proceeds to that asset. Usually allocating the remaining value/basis as the selling proceed is easiest so the asset is removed from the books and there is not depreciation recapture.
Do the same for the land, allocating the value of the sales proceeds to the land. If that increased, it will be Capital Gains since land is not depreciated.
Lastly, use the remaining sale proceeds and allocate to the building.
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