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Investors & landlords
No. The depreciation recapture is not eligible for the 250000/500000 exclusion.
Because you got a tax deduction, for depreciation, while you were renting it; you have to "recapture" that deduction when you sell it. using the example, you will pay tax on $6000. And you will pay that tax at ordinary income tax rates, not capital gains rate. But (again using the example); you will not pay tax on the $25,000 capital gain.
Because you got a tax deduction, for depreciation, while you were renting it; you have to "recapture" that deduction when you sell it. using the example, you will pay tax on $6000. And you will pay that tax at ordinary income tax rates, not capital gains rate. But (again using the example); you will not pay tax on the $25,000 capital gain.
‎June 1, 2019
3:55 AM
4,860 Views