What is Depreciation Recapture?

11 months ago
3

What is Depreciation Recapture? Overview by Chris at Hauseit® (https://www.hauseit.com).

Save money when buying, selling and renting real estate in New York and Florida with Hauseit. Available in NYC, Long Island, the Hudson Valley and South Florida. Established 2014.
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Depreciation recapture refers to the tax that is levied on lifetime depreciation taken on a rental property when it is sold.

This makes sense as real estate investors have been able to depreciate the property over the hold period and write off that depreciation against their taxable income.

So when the property is sold, that depreciation needs to be recaptured.

However, there is an maximum tax rate to this, and a few ways to avoid depreciation recapture.

We explore this mystery and explain further in the following video.
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Hauseit Group LLC, Licensed Real Estate Broker
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Email: team@hauseit.com
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