Depreciation Recapture Tax 2026: §1250 Real Estate at 25% vs §1245 Business Assets Explained
A practical 2026 guide to depreciation recapture tax for U.S. landlords and business owners. Understand how the depreciation you deducted comes back as taxable income when you sell, the difference between the 25% unrecaptured section 1250 gain on real estate and ordinary-income recapture on §1245 equipment, how to calculate adjusted basis, a worked rental sale example, and how 1031 exchanges, cost segregation, and step-up in basis interact.
depreciation recapture section 1250 section 1245
