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01-21-2022
05:01 PM
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For depreciable real estate, this recapture is called section 1250 recapture. Unlike other asset types, only the portion of depreciation in excess of straight-line depreciation is subject to recapture. Since straight-line is the method of depreciation currently used for real estate, there’s usually no recapture of depreciation when depreciable real estate is sold.
That paragraph above is from Intuit's explanation--Straight - line was the method used for this real estate, so there shouldn't be any recapture?