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Recapture Depreciation; As you are probably aware, depreciation reduces your basis for figuring a gain or loss on a sale or exchange of your property. When you sell your property you will be required to recapture the depreciation at ordinary income tax rates or capital gains, in some cases.
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www.real-estate-owner.com/property-selling.html
www.real-estate-owner.com/property-selling.html
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As a landlord, you should have been depreciating the cost of the rental property on your Schedule E. Depreciation reduces your cost basis in the property. ... Let's provide an example with numbers to illustrate how depreciation recapture works in real life. I'm going to be making these numbers up. Your actual tax...
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taxes.about.com/b/2006/01/26/tax-impact-of-selling-a-ho...
taxes.about.com/b/2006/01/26/tax-impact-of-selling-a-home.htm
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Since your basis was reduced by the depreciation, your gains are higher. And so your gains are split into two different categories: capital gains on the appreciation in value of the property, and ordinary gains on accumulated depreciation that you must recapture. ... Depreciation of a Rental Property...
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taxes.about.com/b/2006/06/30/selling-rental-properties....
taxes.about.com/b/2006/06/30/selling-rental-properties.htm
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As a real estate investor, you can depreciate our rental property and enjoy the positive cash flow resulting from write-off of tax depreciation. Tax depreciation helps shelter rental income that is subject to “ordinary income” rates which is generally higher than capital gain rates.
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www.landlordsoftware.com/recapture-tax.htm
www.landlordsoftware.com/recapture-tax.htm
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When you dispose of depreciable property (section 1245 property or section 1250 property) at a gain, you may have to recognize all or part of the gain as ordinary income under the depreciation recapture rules. Any remaining gain is a section 1231 gain.
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www.irs.gov/publications/p544/ch03.html
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In some future year, can I use the balance of the capital loss carryover to offset the depreciation recapture tax on the sale of rental property? Assuming capital gains on the sale is a sure bet, my question is really on the effect, if any, on depreciation recapture.
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www.bankrate.com/finance/taxes/figuring-depreciation-re...
www.bankrate.com/finance/taxes/figuring-depreciation-recapture.aspx
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Dear Keith, As you're finding out a little late, depreciation on a rental property is not an optional deduction. Some people think that because the property does not decline in value, there is no sense in claiming a deduction now and paying tax on it later.
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www.bankrate.com/dls/itax/tax_adviser/20080331_rental_d...
www.bankrate.com/dls/itax/tax_adviser/20080331_rental_depreciation_a1.asp
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James R Kobzeff One of the true benefits of owning rental income property is that real estate investors can depreciate the property and enjoy the positive cash flow resulting from writing off the tax depreciation—just one of the tax shelter...
http://www.scribd.com/doc/14053551/How-Rental-Property-...
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How do I recapture depreciation on rental property that has been sold? ... If you dispose of residential rental property placed in service after 1986 (or after July 31, 1986, if the election to use MACRS was made), you would not have any depreciation to recapture because you used a straight-line method.
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www.unclefed.com/TaxHelpArchives/2001/irs-tt/faq11.html
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