RobertG
Expert Alumni

Investors & landlords

First of all, the reason there is a carryover is that it's an installment sale. In an installment sale, you do not claim all of the income in the year of the sale; it is spread out. Thus, the Section 1250 recapture will also be over time.

 

Second, there is a difference between section 1250 unrecaptured depreciation and ordinary income recapture.

 

There is no ordinary income recapture (per Form 4797), because the depreciation of the rental is straight-line depreciation. No additional recapture is necessary, so Form 4797 line 31 will read $0 as will Form 6252 line 12.

 

 

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