IRC §168(c) · §1250 cited

Rental Depreciation & Recapture

27.5 year straight line on residential rental. Plan the recapture before you sell.

Building basis (purchase price minus land)

Land value (not depreciable)

Month placed in service (Year 1)

Years owned so far

Expected sale price (for recapture estimate)

Depreciation analysis

Annual Depreciation

Year 2+ steady state

Total Taken to Date

After 7 years

§1250 Recapture

25% rate at sale

Strategy loading...

Year 1 prorated (mid-month convention): $0. Capital gain on sale (excluding recapture): $0

Have us file Schedule E and Form 4562 →

Estimates only. Mid-month convention per Reg §1.168(d)-1. Commercial rental uses 39 years instead. Recapture rate is 25% on the §1250 unrecaptured gain (cumulative depreciation up to total gain); remainder taxed as long-term capital gain. §1031 exchange or step-up at death can defer or eliminate. Have us run the real numbers. Phone 689-331-5723.