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Level 4
April 25, 2025
Question

recaptured and unrecaptured 1250 gain

  • April 25, 2025
  • 2 replies
  • 10 views

in selling a rental, 27.5 sl, depreciation, when would you have recapture or unrecapture gain ?

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2 replies

George4Tacks
Level 15
April 25, 2025
sjrcpa
Level 15
April 25, 2025

No recapture, but unrecaptured 1250 gain.

The more I know the more I don’t know.
bandb2Author
Level 4
April 25, 2025

I am unsure about depreciation! At sale, is the entire building depreciation at 27.5 sl unrecaptured  at 25%

George4Tacks
Level 15
April 25, 2025

Building should show on 4797 page 2, Part III lines 20-24. Line 26 should be blank = zero.

If entering through Depreciation - Sale of asset should be in Form 4797 Sales price - Miscellaneous Form 4797 part I, 1 for Complete disposition and 1 for 1250 about 2 entries lower. 

 

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