Skip to main content
Level 4
August 29, 2024

What is the tax treatment difference between "depreciation recapture" and "depreciation unrecapture"?

  • August 29, 2024
  • 1 reply
  • 7 views

 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? 

    1 reply

    sjrcpa
    Level 15
    August 29, 2024

    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.

    The more I know the more I don’t know.
    Level 10
    August 29, 2024

    1250 - real property

    1245 - personal property.