Depreciation Recapture Tax

[Matthew S.]

What is the best way to delay or avoid paying depreciation recapture tax? It is my understanding that when you sell a property, you are required to pay back all of your accumulated depreciation at a rate of up to 25%. If you do a 1031 exchange that will delay the tax. If you pass it on as an inheritance at your death, your heirs will be able to start a new cost basis. Does that include deprecation expense? If the property is in an LLC, would the heirs be eligible for the new cost basis? or would the entity have to pay that tax? How are most of you dealing with this hefty tax on a sale?