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Depreciation Recapture - 25% rate

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J

jlcl

Member
State: California

When an rental real estate property is sold, does the depreciation recapture means that all depreciation taken on prior tax returns as depreciation deductions are taxed at a flat 25% rate?
 


LdiJ

LdiJ

Senior Member
jlcl said:
State: California

When an rental real estate property is sold, does the depreciation recapture means that all depreciation taken on prior tax returns as depreciation deductions are taxed at a flat 25% rate?
Click to expand...
On your federal return depreciation reduces your basis. Real estate is depreciated on a straight line basis. It may however work differently for CA state taxes. You would have to consult a local professional on that.
 
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