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bunch-of-questions
New Member

Depreciation recapture tax rate

about how to find out depreciation recapture tax rate , I found two very different articles.

1.https://www.kiplinger.com/article/investing/T054-C032-S014-depreciation-tax-break-has-real-estate-co... 

2. http://www.wgcpas.com/news/alerts/405-tax-matters-tax-implications-of-depreciation-recapture-when-se...

one told me the rate is ordinary rate, the other told me is 25%. from other post of this forum, it says maximum is 25%.

could someone tell me, how the rate actually works out?

 

1 Best answer

Accepted Solutions
Critter
Level 15

Depreciation recapture tax rate

Recapture is taxed as ordinary income rates not to exceed 25% ...

So if your ordinary rate is 10% then the recapture is 10%... But if your rate is higher than 25% the recapture portion will be capped at 25%  

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4 Replies
bunch-of-questions
New Member

Depreciation recapture tax rate

bunch-of-questions
New Member

Depreciation recapture tax rate

Critter
Level 15

Depreciation recapture tax rate

Recapture is taxed as ordinary income rates not to exceed 25% ...

So if your ordinary rate is 10% then the recapture is 10%... But if your rate is higher than 25% the recapture portion will be capped at 25%  

bunch-of-questions
New Member

Depreciation recapture tax rate

ok, thx
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