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Depreciation Recapture Explained [Tax Smart Daily 007]

 

When you sell a rental property, you must pay a tax on the depreciation you previously claimed. Depreciation recapture can be classified into three categories: (1) Sec. 1245 recapture, (2) Sec. 1250 recapture, and (3) unrecaptured Sec. 1250 gain.

Learn how this tax may affect you when you sell your rental in this video from The Tax Smart Real Estate Investors YouTube channel.

Listen in to learn:

  • What depreciation recapture is
  • The three types of depreciation recapture

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