Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Depreciation recapture occurs when a rental property is sold. The IRS requires property owners to pay taxes on the depreciation deductions claimed over the years, which can result in a higher ...

Section 1250 of the U.S. tax code applies to gains from the sale of depreciated business real estate. If a property was ...

Depreciation recapture happens when an investor uses ... Section 1250 applies to commercial and residential rental properties ...

Take, for example, a rental property costing $50,000 ... created a rule that when a person sells an investment property the depreciation recapture tax is computed on the amount of depreciation ...