What is Depreciation Recapture?

Lisa Marie Brugman, EA

Published on: 24/11/2025

Renting out part of your home? When you sell, depreciation recapture and the Section 121 exclusion come into play. Learn how the IRS taxes the rental portion, what gain you can still exclude, and how to avoid surprises at the sale of your main residence.

TaxesIRSDeductions

What is Depreciation Recapture?

Lisa Marie Brugman, EA

Published on: 23/09/2025

Thinking of selling your home after renting part of it out? Don’t forget about depreciation recapture—the IRS will want back taxes on the deductions you claimed (up to 25%). Section 121 can shield big gains, but it won’t erase recapture. Plan smart, save more.

TaxesExpensesDeductions