If the property sold in an installment sale is subject to depreciation recapture, the tax law requires that a portion of the amount of depreciation recapture be recognized as ordinary income in the year of sale, depending on the amount of cash the taxpayer receives during the year.

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If the property sold is subject to depreciation recapture, the tax law requires that the entire amount of depreciation recapture be recognized as ordinary income in the year of sale, regardless of the amount of cash the taxpayer receives during the year.

If the Property Sold in an Installment Sale Is Subject