“There are two different ways that the recaptured depreciation may be taxed. For real property, the portion of accelerated depreciation that exceeds the straight-line depreciation is taxed at a special 25% tax rate. The portion of depreciation that would have been taken under the straight-line rate will be recaptured at the ordinary tax rate. Non-residential real estate must be depreciated over 39 years using the straight-line method, so only recaptured depreciation will just be taxed at ordinary rates.”
standard disclaimer applies: see a tax expert. talk to a tax expert. feel up a tax expert. 🙂
standard disclaimer #2: disregard “feel up a tax expert.”
