topic Depreciation recapture tax rate in Investors & landlords

Depreciation recapture tax rate

bunch-of-questions — Thu, 06 Jun 2019 15:03:04 GMT

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

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?

Critter — Thu, 06 Jun 2019 15:03:08 GMT

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 — Thu, 06 Jun 2019 15:03:09 GMT

ok, thx