How Is Recapture Taxed?

How Is Recapture Taxed? Depreciation recapture on non-real estate property is taxed at the taxpayer’s ordinary income tax rate, rather than the more favorable capital gains tax rate. … To calculate the amount of depreciation recapture, the adjusted cost basis of the asset must be compared to the sale price of the asset. What rate

How Is Depreciation Recapture Taxed On Real Estate?

How Is Depreciation Recapture Taxed On Real Estate? Depreciation recapture on real estate property is not taxed at the ordinary income rate as long as straight-line depreciation was used over the life of the property. Any accelerated depreciation previously taken is still taxed at the ordinary income tax rate during recapture. How do you calculate