Depreciation Recapture Tax Calculator
Quantify unrecaptured Section 1250 depreciation recapture at 25%, plus federal capital gains and NIIT, on the sale of a rental property.
- Recapture Rate
- 25%
- Unrecaptured §1250
- Residential Life
- 27.5 yrs
- Straight-line
- Commercial Life
- 39 yrs
- Straight-line
Formula & Statutory Rule
Formula
recapture_tax = min(recognized_gain, accumulated_depreciation) × 25%
Statutory Rule
residential_life = 27.5 yrs; commercial_life = 39 yrs; straight_line = trueRegional Benchmark Reference
| Jurisdiction / Tier | Rate or Limit | Statutory Note |
|---|---|---|
| Recapture | 25% | §1250 |
| Residential | 27.5 yrs | Straight-line |
| Commercial | 39 yrs | Straight-line |
Frequently Asked Questions
What is depreciation recapture?
It is the tax on depreciation previously claimed, charged at up to 25% for unrecaptured Section 1250 gain.
How is residential depreciation calculated?
Residential rental property is depreciated straight-line over 27.5 years.
How is commercial depreciation calculated?
Commercial property is depreciated straight-line over 39 years.
Can a 1031 exchange defer recapture?
Yes. A qualifying like-kind exchange defers recapture along with the capital gain.