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Tag Archives: Depreciation Recapture

What if no depreciation recapture was taken on my 1031 exchange property?

Monday, March 7, 2011

Depreciation recapture is a factor that must be considered when you determine your capital gains tax and if you are considering an IRS 1031 Exchange. You add it the 15% tax on your Net Realized Gain (Adjusted sales price  minus Adjusted Basis). If you have taken NO depreciation during the time you owned your property, [...]

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How do I figure out depreciation recapture on my personal residence for a 1031 Exchange?

Thursday, March 3, 2011

This is a tricky question because you ask about depreciation recapture but you want to know how it reflects your 1031 Exchange on your personal residence. We have a great article about depreciation recapture about it in our 1031 Exchange Knowledge Base and we also show you how to calculate this in our FREE Capital [...]

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How much of 1031 Exchange Recognized Gain is Depreciation Recapture?

Sunday, February 13, 2011

The depreciation recapture provisions of §1250 (real property) and §1245 (personal property) apply to 1031 exchange as well as sales. These provisions require certain depreciation to be recaptured as ordinary income (instead of long-term capital gain) when the property is sold or exchanged and a gain is recognized. Rates may vary but most of the [...]

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In a 1031 Exchange, is Depreciation Recapture taxed as Regular Income?

Sunday, February 13, 2011

If you 1031 exchange property subject to Depreciation Recapture, and no gain is recognized, the “recapture potential” of the Relinquished Property carries over to the Replacement Property. If you exchange property subject to recapture, and gain is recognized because of boot taken, the ordinary income portion of the recognized gain is limited to the depreciation [...]

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