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Recapturing Capital Gains |
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In 2007, I sold my rental property that was completly depreciated. I'm told by my accountant that I must now pay ordinary income on the depreciation recapture. I was hopping to pay only lower Capital Gains tax on the entire net selling price (max. of 15%). This seems unfair to long term investors of real estate. What is your thoughts? |
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You've been able to deduct the cost of the property against ordinary income. Some people would say that was unfair to the rest of the taxpayers.
At any rate, it's my understanding that recaptured depreciation is taxed at no more than 25 percent. Do check with your accountant again, and let me know if I'm mistaken. |
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Edith
Originally published on January 27, 2008 |
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