When you eventually sell the property, the IRS will impose what is called “depreciation recapture” to recapture the taxes you would have paid over the years without the benefit of claiming ...
Depreciation recapture occurs when a rental property is sold. The IRS requires property owners to pay taxes on the depreciation deductions claimed over the years, which can result in a higher ...
This is due to depreciation recapture rules and occurs when there are significant differences between the properties exchanged. Trading unimproved land for improved, income-generating real estate ...