Capital gains and depreciation recap on 1031 exchange property

[alokjhafb]

I have a residential multifamily apartment complex that I bought as a 1031 exchange, after selling two separate properties. 

I have decided that when I sell my current multifamily property, I will NOT 1031 exchange.

My question is - when it's time to calculate capital gains and depreciation recapture, will I be paying capital gains and depreciation recapture only on the current asset or will the gains from selling the older properties and depreciation recapture I avoided on the older properties will also have to be paid?

[Anonymous_ · Accepted solution]

Yes, any gain (and "recapture") that was deferred will no longer be deferred at the time of the sale.