FOR DEPRECIATION RECAPTURE DO YOU ALSO INCLUDE DEPERCIATION INYEAR SOLD?
DEPRECIATION FOR 10 YRS = 10000
DEPRECIATION IN YEAR SOLD = 2000
This is a great question. Yes, you will be assessed a depreciation recapture tax up until the date you sold the property. If you want to avoid the depreciation recapture tax, you might want to consider doing a 1031 Exchange. I’ve included a couple of links here for you on 1031E and how to calculate depreciation.
I’d encourage you to speak with a tax accountant to make sure you’re not overpaying on taxes, and if you decide to do a 1031E.
Hope this helps. Here are the links:
Section 1031E: https://fitsmallbusiness.com/1031-exchange-like-kind/
Section 1031E companies: https://fitsmallbusiness.com/best-1031-exchange-companies/
Rental Property Depreciation Rules: https://fitsmallbusiness.com/rental-property-depreciation-rules/