Depreciation Recapture Calculator

Calculate the depreciation recapture tax (Section 1250) when selling investment property.

Property Details

Original Purchase Price ($)

Land Value ($)

Capital Improvements ($)

Years Held

Property Type

Sale Price ($)

Selling Costs ($)

Capital Gains Rate (%)

NIIT (3.8%)

$72,831

Effective tax rate: 26.8%

Depreciable Basis$450,000

Annual Depreciation$16,363.636

Total Depreciation Taken$163,636.364

Adjusted Basis$386,363.636

Net Sale Proceeds$658,000

Total Gain$271,636.364

Depreciation Recapture (25%)$163,636.364

Capital Gain$108,000

Recapture Tax (25%)$40,909.091

Capital Gains Tax$21,600

NIIT (3.8%)$10,322.182

Net Proceeds After Tax$585,168.727

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MyCalcBuddy Editorial Team

This page is maintained as an educational calculator reference.

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Formula Source: Standard Mathematical References

by Various

ðŸ”„Last reviewed: May 2026

âœ“Formula checks are based on standard references and internal QA review.