Offsetting depreciation recapture at sale with stock loss carryforwards

[blaketm]

I own rental property that I depreciated and will be selling.  I believe that the depreciation will need to be recaptured as income at sale.  Can I offset this recaptured income against common stock loss carryforwards?  That is, aren't both considered capital gains and losses that offset each other?  Thanks, J   

[ColeenD3]

No, they are not the same thing. Any gain attributed to the recapture of depreciation is treated as ordinary income, not capital gains.

[blaketm]

Thanks Colleen, wouldn't the gain on sale of property be a capital gain?  Would the capital gain portion exclude the depr. recapture?  I have to recapture depr. correct?

[ColeenD3 · Accepted solution]

Yes, you have to recapture depreciation. If there is any gain over and above the recapture, then yes, that would be capital gain.