DDollar
Expert Alumni

Investors & landlords

No, not if you sold the farm for a loss.  Depreciation recapture comes in to play when you sell depreciated assets for a gain.  To the extent that there is a gain, the gain is taxed as ordinary income up to the amount of the accumulated depreciation, and the remainder of the gain is capital gain. Since you sold at a loss, depreciation recapture wouldn't come it to play.

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