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Personal Finance

What is depreciation recapture?

Quick Answer

Depreciation recapture is the tax due when you sell a rental property. The IRS reclaims previously deducted depreciation at up to 25% federal (Section 1250 unrecaptured gain), separate from the regular capital gain rate.

Depreciation recapture math on a sample rental sale.
Warren Team
Updated April 26, 2026
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The information provided is for educational purposes only and should not be considered as personalized financial advice. Warren is a registered investment advisor. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions.

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