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calculating real estate taxes

Understanding Depreciation Recapture When You Sell a Rental Property

If you’re a savvy rental property owner who took advantage of depreciation, be aware that the IRS might want some of that money back.


[Updated: Feb 04, 2021 ] Aug 26, 2019 by Jean Folger
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Category Value Percentage
Improvements $150,000 75%
Land $50,000 25%
Total Value $200,000 100%
Partial Tax Depreciation Chart

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Data source: Internal Revenue Service. Chart by author.
IRS Form 4797

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Image Source: Internal Revenue Service