Depreciation Recapture is the amount of gain resulting from the disposition of single family rental investment property or other property type that represents the recovery of depreciation expense that has been previously deducted on the Taxpayer’s (Exchangor’s) income tax returns. Leftover boot in a 1031 exchange can result in a federal tax rate of 25% on depreciation recapture plus any taxes owed at the state level.

Full Glossary

If after learning a bit more about Depreciation Recapture you are curious to see how your current Investment Portfolio would benefit from performing a 1031, then I recommend signing up to receive a FREE 1031 Sizing from Conatus.

This sizing gives you info about the value of replacement properties you need to purchase and the amount of related debt on this purchase to fully defer your capital gains associated tax liability.

As an added benefit you will receive a comparison of your current income vs potential replacement property income that includes an assessment of income tax benefit between the
two.

The Conatus 1031 Sizing is your blueprint for how to maximize cash flow from trading your equity for a multiple on income.

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