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What Is Unrecaptured Section 1250 Gain?

Don't get caught off guard with unrecaptured Section 1250 gains. Find out how much of your capital gains is unrecaptured Section 1250 gains and how much you can expect to be taxed on it.


[Updated: Oct 04, 2021 ] Feb 19, 2020 by Kevin Vandenboss

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Purchase price $200,000
Claimed depreciation allowance ($50,000)
Adjusted cost basis $150,000
Sale price $250,000
Unrecaptured Section 1250 gain $50,000
Long-term capital gain $50,000
Total capital gain $100,000
Long-Term Capital Gains Rate Single Filer Married Filing Jointly Head of Household Married Filing Separately 
0% $0 - $39,375 $0 - $78,750 $0 - $52,750 $0 - $39,375
15% $39,376 - $434,550 $78,751 - $488,850 $52,751 - $461,700 $39,376 - $244,425
20% $434,551 + $488,851 + $461,701 + $244,426 +

2019 capital gains tax rates. Data source: Tax Foundation.

Property type Section 1231 Section 1245 Section 1250
Machinery Yes Yes No
Office equipment Yes Yes No
Land Yes No Yes
Buildings Yes No Yes

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