turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

I have sold three properties from my rental property portfolio this year. Why is one of the three showing as a Section 1250 property, while the others are 1245 properties from an unrecaptured depreciation perspective.

 
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
PatriciaV
Employee Tax Expert

I have sold three properties from my rental property portfolio this year. Why is one of the three showing as a Section 1250 property, while the others are 1245 properties from an unrecaptured depreciation perspective.

It depends on the type of rental property you sold. Section 1245 assets are depreciable personal property (furniture, equipment, etc.)  or amortizable Section 197 intangibles; Section 1250 assets are real property, whether depreciable or not. Either one of these provisions may result in capital gains and/or ordinary income (including depreciation recapture).

 

Also note that Section 1250 applies to assets that are not and have never been Section 1245 property. If you converted a rental from personal use, this would cause the sale to be subject to Section 1245.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question