Perhaps this is simple and I'm making it too complicated, but I am selling a rental property and over 17 years I've depreciated it about 100k. My tax rate has grown from the 12% to 22% over the years. My turbo tax effective tax rate has been about 7-12% yearly. Is the IRS really asking me to pay back 25% of the depreciation even when it was really only lowering my AGI by 15% of the depreciation? Am I mixed up in thinking I got a 15% benefit over the years but now I'm required to pay back more than I used?
