BobKamman
Level 15

This is from a website suggesting a 1031 exchange would avoid this problem, but it confirms what I have said:  All depreciation has to be recaptured in the year of sale.

"When selling property, in addition to owing tax on the gain due to appreciation in the value of the property, taxpayers must pay tax on the “recapture of depreciation.”  If the investor has taken depreciation deductions (or could have taken them), he pays tax on these deductions when he sells the property.  All taxes on recapture of depreciation are due in the year of sale and cannot be deferred using an installment note.  For some taxpayers in the current market, this is an important point to remember, because they may have as much recapture of depreciation gain as gain due to appreciation.

https://www.firstexchange.com/content/installment-sale-essentials