Depreciation Recapture on Sale
Recaptured amount, the rate applied, the recapture tax.
Example
You enter
- Asset class 1250
- Accumulated depreciation ($) 100000
- Total gain on sale ($) 150000
- Ordinary income rate (%) 32
- Straight-line depreciation ($, §1250) 100000
- §1250 max rate (%) 25
You get
- Recaptured 100000
- Recapture tax $25,000
Checked against published worked examples from: IRS Pub 544 / IRC §1245 / §1250.
Details, formula, and sources
ScopeRecaptured amount, the rate applied, the recapture tax, and the remaining capital-gain portion for a §1245 or §1250 sale. Per IRS Pub 544 and IRC §1245 / §1250; tax information, not advice.
Formula or table§1245: recaptured = min(gain, accumulated depreciation) at the ordinary rate. §1250: unrecaptured = min(gain, straight-line depreciation) at the 25% maximum rate. Recapture cannot exceed the gain.
Source and editionIRS Pub 544 and IRC §1245 / §1250, by name.
Free accessFree at irs.gov and uscode.house.gov; tax information, not advice - current IRS rules and a CPA govern.
What governsEstimate only. Tax law changes. Confirm with the current IRS publication or a licensed CPA before filing.
API field namesasset_class, accumulated_depreciation, total_gain, ordinary_rate_pct, straight_line_depreciation, max_1250_rate_pct, recaptured, recapture_tax
- Ordinary rate user-supplied marginal ordinary-income ratecurrent IRS brackets
- 25% cap the §1250 unrecaptured-gain rate is a maximum, not a flat rateIRC §1(h)