tax consequences of selling rental property?

[Matt F.]

can anyone simply explain the tax consequences as a result of selling a rental property thats been depreciated? i hear folks refer to depreciation "recapture" but not entirely sure what that means.

[Natalie Kolodij]

Basically the IRS says we gave you that tax break because you were keeping it as an investment

You sell it and they want it back

You have to recapture the depreciation. It's 1250 tax and it's 25%. So basically you have to pay 25% tax on all depreciation you've taken over the life of the rental.