What happens when I sell my property for more than its depreciated value?

What happens when I sell my property for more than its depreciated value? I know this is basic r.e., but I am fuzzy.

Coleen3
Intuit Alumni

Deductions & credits

 There are potentially two types of gain on the sale of a rental. 

For example, if you bought the house for $100,000 and sold it for $200,000, you would have a $100,000 capital gain. 

If you further took $25,000 of depreciation, the gain would now be $125,000 and the depreciation portion would be recaptured and taxed as ordinary income. 

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