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 ...

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 ...

Depreciation recapture happens when an investor uses ... Section 1250 applies to commercial and residential rental properties, office buildings and other depreciable real estate assets that ...

Section 1250 of the U.S. tax code applies to gains from the sale of depreciated business real estate. If a property was depreciated beyond the straight-line method, the extra depreciation is taxed at ...