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Unrecaptured Section 1250 gain
Also called: 1250 gain · unrecaptured 1250
A category of long-term capital gain generally associated with depreciation taken on Section 1250 real property and subject to special tax-rate treatment.
What it means in practice.
The calculation is technical and should be prepared by a tax professional using the taxpayer’s depreciation and disposition data.
Why it matters.
Investors often refer loosely to “depreciation recapture,” but the precise federal treatment can involve different character rules.
Additional notes.
The calculation is technical and should be prepared by a tax professional using the taxpayer’s depreciation and disposition data.
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