Depreciation recapture is the process by which the IRS reclaims tax benefits previously obtained through depreciation when an investor sells a depreciable asset for more than its depreciated value.
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 ...
I do real estate tax consulting, and a common question is when “depreciation recapture” is recognized when real estate is sold. There are two types of recapture rules, one that applies to personal ...
It can pay to be a responsible rental property owner. For instance, if you’re always investing in your rental property and making improvements, not only will your tenants appreciate it and remain ...
Most tangible assets lose value over time. Equipment wears out, buildings require regular maintenance and upkeep, and computers become obsolete. To reflect the steady loss of value in capital assets, ...
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Tax deductions — including those derived from depreciation — are a critical part of most companies' financial strategies. However, this year's uncertainty in Washington is resulting in a particularly ...
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