It is heard very often about a concept called "deprecation recapture".
On K-1 form, there also has a line called "unrecaptured section 1250 gain".
What is the difference between the two?
Is there any tax treatment difference between the two as well?
Unrecaptured 1250 gain is taxed at a maximum rate of 25%. It is gain on an asset sale up to the amount of depreciation claimed on that asset.
1250 - real property
1245 - personal property.
Hi sjrcpa,
Maxinum tax rate for UNrecapture depreciation is 25%.
What is the maxinum tax rate for recapture depreciation?
The taxpayer's ordinary income tax bracket.
Is it taxpayer's ordinary income effective tax rate or marginal tax rate?
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