Depreciation Recapture

When you own an investment property you have the tax advantage of depreciating the improvements to the property.  When you sell improved investment property, YOU must pay tax on the recapture of that depreciation.  Even if you have absolutely no gain due to appreciation, you will owe tax at the rate of 25% of the amount that you depreciated, or could have depreciated, during the time you owned the property.  Check with your tax accountant before you plan on selling an investment property.