Tax Return Preparation

If you sell rental property that you’ve owned for more than one year prepare to pay back the Feds 25% of the depreciation (tax relief) you accumulated during your ownership. It comes from the Tax Relief Act of 1997 and applies to all IRC Section 1250 gains (which for our purposes means all rental property investments) and is generally referred to as “recapture” or Internal Revenue Code (IRC) Section 1250 gain. Here’s the idea.

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