I have a question on this too. I have a client that sold a property and I know based on tax rules that he must pay 25% recapture on his $6,000 of accumulated depreciation on a rental property. He has a capital loss carryforward that is wiping out the entire capital gain portion, but shouldn't he still owe recapture of roughly $1500? ProSeries simply isn't calculating recapture, only capital gain. I does however reduce the cost basis by the depreciation, but that only effectively charges the depreciation as a long term capital gain. Am I missing a setting or something to trigger the recapture tax as ordinary income?