Rental Depreciation Recapture Tax
Estimate the federal depreciation recapture tax due when selling a rental property, using your reported gain and prior depreciation. The tool also shows capital gains tax on the remaining profit.
For planning only; not tax advice. Validate figures with your CPA using your full return details.
Examples
- Gain $180,000, depreciation $70,000 at default rates (25% recapture, 15% LTCG) → $17,500 recapture + $16,500 capital gains = $34,000 total.
- Gain $90,000, depreciation $120,000 (capped at gain), with recapture rate 25% and capital gains 20% → $22,500 recapture + $0 capital gains = $22,500 total.
FAQ
Does this include state taxes?
No. State and NIIT surcharges vary; add them separately if applicable.
What if my depreciation exceeds the gain?
The calculator caps recapture at the total gain, because you cannot pay recapture on more than the overall profit.
Should selling expenses reduce the gain input?
Yes. Enter gain after subtracting selling costs so the calculation reflects your taxable profit.
Additional Information
- Recapture applies up to the lesser of total gain or depreciation taken and is typically taxed up to 25% federally.
- Remaining gain after recapture is taxed at long-term capital gains rates; defaults to 15% unless you enter another rate.
- Outputs show each component and the combined estimated federal tax, rounded to cents.