Solved: Tax rate on Section 1250 (unrecaptured depreciation)
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest second stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
New Member

Tax rate on Section 1250 (unrecaptured depreciation)

Can someone clarify what the tax rate is on unrecaptured Section 1250 depreciation? I have read that it is a flat 25% (like the flat 0,15 and 20% capital gains rate) but I also have read that it is up to a maximum 25%, ie not a flat 25%. I consulted with two accountants who gave me conflicting answers.
Title 26, Section 1(h)(1)(E) seems to support the flat rate but I am not sure if I am interpreting this correctly.
1 Best answer

Accepted Solutions
Level 9

Tax rate on Section 1250 (unrecaptured depreciation)

It is up to a maximum of 25%.


I agree that both §1(h) and the Schedule D worksheet are mind-bending, that is how it works.

https://www.irs.gov/pub/irs-prior/i1040sd--2015.pdf#page=15

https://www.law.cornell.edu/uscode/text/26/1#h


View solution in original post

2 Replies
Level 9

Tax rate on Section 1250 (unrecaptured depreciation)

It is up to a maximum of 25%.


I agree that both §1(h) and the Schedule D worksheet are mind-bending, that is how it works.

https://www.irs.gov/pub/irs-prior/i1040sd--2015.pdf#page=15

https://www.law.cornell.edu/uscode/text/26/1#h


View solution in original post

New Member

Tax rate on Section 1250 (unrecaptured depreciation)

Thanks!
Dynamic Ads
v
Privacy Settings