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.