Depreciation recapture
Also called: recapture tax · depreciation recapture tax
A general term for tax rules that can cause prior depreciation deductions to affect the character or rate of gain when depreciable property is disposed of.
What it means in practice.
Real-estate dispositions can involve Section 1250 and unrecaptured Section 1250 gain concepts. The exact calculation depends on the property and depreciation history.
Why it matters.
Exchange planning should model not only headline capital gain but also depreciation-related tax exposure.
Additional notes.
Real-estate dispositions can involve Section 1250 and unrecaptured Section 1250 gain concepts. The exact calculation depends on the property and depreciation history.
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