Depreciation Recapture Estimator
Estimate depreciation recapture and capital gains tax on your relinquished property before completing a 1031 exchange in Dallas, TX. Understanding these tax implications helps you plan your exchange strategy effectively.
Depreciation Recapture Estimator
Original purchase price plus improvements
Total depreciation taken over ownership period
Sale price of relinquished property
If known, otherwise calculated automatically
Understanding Depreciation Recapture
- • Depreciation Recapture: Portion of gain taxed as ordinary income (up to 25% rate) rather than capital gains
- • Capital Gain: Gain in excess of depreciation recapture, typically taxed at capital gains rates (15-20%)
- • 1031 Exchange: Allows deferral of both depreciation recapture and capital gains when exchanging into like-kind property
Educational content only. Not tax, legal, or investment advice. Results are estimates only. Consult a qualified intermediary and tax advisor before making decisions. Texas does not impose a state real estate transfer tax. Recording fees and title insurance premiums still apply.
Related Resources
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