Thank you DaveT...your knowledge just astounds me! The examples made everthing very clear. The only part I wasn't sure of was: "Currently, the depreciation recapture tax rate is 25%, while the maximum long term capital gains tax rate is 20%." Is that per year or for holding period or...? Thanks for your help & patience! Christina
Check out this article. If, after reading this article, you still have a question on depreciation recapture, come back and post it in the forum.
How Depreciation is Recaptured
Thank you DaveT...your knowledge just astounds me! The examples made everthing very clear. The only part I wasn't sure of was: "Currently, the depreciation recapture tax rate is 25%, while the maximum long term capital gains tax rate is 20%." Is that per year or for holding period or...? Thanks for your help & patience! Christina
The tax is applied to your profit in the year of sale. I guess I would say that the tax is per event -- the sale of the property.