How does depreciation recapturing work if I sell a rental property?

[sam-1221]

What are the tax rates ? Will it still apply if I do not claim depreciation while I own the property? Does it apply to Non resident aliens?

[SweetieJean]

Is this related to your other 2 questions?

[sam-1221]

It's a separate topic related to depreciation

[SweetieJean]

You still have to recapture depreciation that you SHOULD have taken. And all of your questions are related to the same issue: the rental property.

[sam-1221]

What about the recapture tax rates?

[SweetieJean]

See this example:
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/3358118-selling-rental-capital-gains-and-depreciation-recapture">h...>

[TaxGuyBill · Accepted solution]

As the link above shows, if you sell the home at a "Gain", the depreciation that you were eligible to claim is taxed at your regular tax rate, up to 25% (plus State taxes).  It is taxed even if you did not actually claim the depreciation.

Yes, it applies to Nonresident Aliens.  Just be aware that TurboTax is not able to do tax return for Nonresident Aliens.

[Carl]

You are required by law to depreciate rental property. Then when you sell the property all depreciation is recaptured and taxed at a minimum rate of 15%.  It can (and usually does) go higher.

If you do not claim deprecation as required by law, then when you sell the property you must reduce your cost basis by the amount of deprecation you *should* have taken, which means you're paying taxes on it anyway. In my opinion that's double taxation. But it's the law, and my opinion doesn't change that.