Depreciation Recapture Calculator

Property Basis & Depreciation

Enter the property basis and accumulated depreciation from Form 4562 or depreciation schedule.

Purchase Date

Property Type

Original Basis

Accumulated Depreciation

Land (Non-depreciable)

$

N/A

5-Year Property

$

5-Year Depreciation

$

7-Year Property

$

7-Year Depreciation

$

15-Year Property

$

15-Year Depreciation

$

Building (1250 Property)

$

Building Depreciation

$

Summary

Total Basis $0

Total Depreciation $0

Adjusted Basis $0

1245 Property $0

1245 Depreciation $0

1250 Property $0

1250 Depreciation $0

Property Sale Details

Enter the anticipated sale information.

Expected Sale Price

$

Selling Expenses

$

Outstanding Mortgage Balance

$

Your Tax Rate

%

Tax Strategy Options

Configure your tax mitigation strategies.

1031 Exchange Parameters

Target LTV for Replacement Property

%

Interest Rate for New Loan

%

"Poor Man's 1031" Strategy

💡

What is a "Poor Man's 1031"?
Instead of a formal 1031 exchange, you sell your property and purchase a replacement property in the same tax year. By performing cost segregation on the new property and taking advantage of 100% bonus depreciation, you can create significant first-year deductions to offset your recapture gain. This strategy is particularly effective for offsetting Section 1245 recapture, which is taxed at ordinary income rates.

Replacement Property Type

Purchase Price

$

Down Payment %

%

Loan Interest Rate

%

Estimated Cost Seg %

%

Study Cost

$

✓ Assuming 100% bonus depreciation (post-OBBB legislation effective Jan 19, 2025)