Sentences with phrase «depreciation at ordinary income tax rates»

This is not the case if you fail to take the depreciation expense IRS still requires you to recapture what you should have taken in depreciation at ordinary income tax rates.

Not exact matches

The portion of the gain attributable to depreciation is taxed at your ordinary income rate.

When a property is sold, its depreciation must be recaptured and then incur capital gains tax (often at a lower rate than ordinary income).

D - epreciation: One of the cons of flipping is that it produces taxable income at ordinary rates whereas holding can allow you to have an income via positive cash flow and yet show a tax loss from depreciation.