All taxable income from investment property sales must eventually be classified as either ordinary income, depreciation recapture income, or capital gain income. What is the maximum tax rate that an investor can be charged on depreciation recapture income?

Question

Quizplus · Accepted Answer

The maximum tax rate for depreciation recapture income is currently 25%. This is because depreciation is taxed as ordinary income up to a maximum of 25%, regardless of the investor's income tax bracket.

All Taxable Income from Investment Property Sales Must Eventually Be