@Carl wrote:
....the recaptured depreciation itself will be taxed anywhere from 0% to a maximum of 25%. What rate you get, just depends on the numbers.
The maximum tax rate of 25% (if you're following along) is applicable to Section 1250 property, essentially real property.
There is no maximum tax rate (i.e., no 25% cap) with respect to depreciation recapture for Section 1245 (personal property); it is taxed at the taxpayer's marginal tax rate (up to 37%).
@Carl wrote:
Understand that depreciation is not a permanent deduction.
Not true as a blanket statement. It is a permanent deduction if:
1) You die owning the property upon which depreciation deductions were taken; or
2) You scrap the property; or
3) You sell the property for your adjusted basis or less.
