TaxGuyBill
Level 15

Correct.

"Recapture" (based on depreciation in excess of straight-line) is taxed as ordinary income.

"Unrecaptured Section 1250 Gain" (based on straight-line depreciation) is a capital gain, but it is taxed at your ordinary rate, up to 25%.

And that is just for real estate (1250 property).  For other assets ("personal property", 1245 property), all of the gain due to depreciation is "recaptured" (even straight-line depreciation).