Depreciation on MACRS 27.5 year residential rental is subject to ordinary income recapture?

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2007-12-06 23:52:52 · 2 answers · asked by Hello 1 in Business & Finance ➔ Taxes ➔ Other - Taxes

It's Section 1250 recapture, which is subject to a maximum tax rate of 25%.

2007-12-07 00:35:29 · answer #1 · answered by Anonymous · 0⤊ 0⤋

When you sell the property any depreciation allowed OR ALLOWABLE is recaptured and is subject to tax at a max rate of 25%.

2007-12-07 01:40:08 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋