Depreciation recapture - Posted by Neil-pa

Posted by Rick V on April 04, 2000 at 24:55:25:

It’s not really a recapture, it is just that the portion of the gain which is attributable to your reduction in basis due to prior depreciation is taxed at a maximum of 25% instead of 20%.

Depreciation recapture - Posted by Neil-pa

Posted by Neil-pa on April 02, 2000 at 13:19:26:

Found a tri-plex owned by an elderly woman who wants out. In our conversation she is concerned about recapturing her depreciation for tax purposes. She lived on the first floor of this property since 1970’s I told her I thought that she would be exempt up to 250,000$ since it was her primary residence. Am I correct?

Also, when you recapture depreciation, does it only affect your tax basis? If not, then what else does it affect.

Any help will be appreciated.


Re: Depreciation recapture - Posted by Bronchick

Posted by Bronchick on April 02, 2000 at 16:06:27:

The personal residence exemption from capital gains only applies to the portion of the property that was used as a personsl residence. Thus, the rest of the property is subject to depreciation recapture at 25%.

Aren’t there two kinds? - Posted by d.moren

Posted by d.moren on April 03, 2000 at 20:16:45:

Isn’t there a difference between a “standard depreciation” and an “excelerated” one?
My tax guy told me there is no recature on a standard one.