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Level 4
April 29, 2025
Question

section 1250 depreciation / disposition inputs

  • April 29, 2025
  • 2 replies
  • 14 views

Trying to get a handle on recapture vs unrecaptured depreciation on rental building. It is SL 27.5 years. Dispositions  input asks for: 1- recapture excess over SL, 2-recapture all, 3 no  recapture .  Not # 1, but question is it # 2 or # 3?

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2 replies

George4Tacks
Level 15
April 29, 2025

Why is is NOT #1? Was it 27.5 years Straight Line (SL)? 

Answers are easy. Questions are hard!
bandb2Author
Level 4
April 30, 2025

Yes 27.5 SL was used, so #1 is out. recapture is called unrecaptured, for 1250  real estate, which is shown on Sch D. I believe the answer is #3

George4Tacks
Level 15
April 29, 2025

You might want to read https://www.irs.gov/forms-pubs/about-publication-527 

When I started, all we had were paper publications. These digital ones work even better. 

Answers are easy. Questions are hard!