Depreciation Recapture Rates Ordinary Income Tax Rate. The ordinary income tax rate is typically applied to depreciation recapture on most properties. This rate can be as high as 37%, ...

In this week's AirMail Focus, aviation tax attorney Suzanne Levy, of Advocate Consulting Legal Group, helps aircraft owners ...

Depreciation recapture: The $150,000 in depreciation is recaptured and taxed at up to 25%. Remaining capital gain: The remaining $200,000 gain is taxed at the standard long-term capital gains rate ...

If the tractor had sold for $70,000, then there would have been depreciation recapture of $50,000 and Section 1231 gain of $20,000. This gain is usually taxed as long-term capital gains, ...

Continue reading → The post How to Avoid Depreciation Tax on Rental Property appeared first on SmartAsset Blog. It can pay to be a responsible rental property owner.

IRS Section 1245 determines how certain types of property are taxed upon sale. Specifically, it deals with recapturing depreciation on personal property and specific kinds of real estate. When ...

Depreciation recapture: When selling a depreciated property, investors face a tax called depreciation recapture. This is how the IRS gets paid the taxes you didn’t pay when you depreciated the ...

How to Avoid Depreciation Tax on Rental Property. If it’s important to you to avoid the depreciation recapture tax, there are several strategies you may want to adopt.