When corporate and noncorporate taxpayers sell real property placed in service after 1986,all depreciation taken will be taxed at 25%.

Question

Quizplus · Accepted Answer

Depreciation recapture rules state that a portion of the gain on the sale of the property is taxed at the ordinary income tax rate, not a flat 25%. The exact percentage depends on the amount of depreciation taken over the life of the property.

When Corporate and Noncorporate Taxpayers Sell Real Property Placed in Service