How does depreciation recapture work?

[Anthony Blasko]

I've heard a lot about the benefits of depreciation and forcing as much into it when you first buy the property, but how does depreciation recapture work and is it something that most investors ignore because they plan on doing a 1031 exchange?

Are flippers worried about it?

[Bill B.]

That financial planner should have any certifications taken away and their clients warned. Either they are “teaching” clients about something they don’t have a clue about or they are out right lying in a way that will cost their clients thousands of dollars. 

You have to pay depreciation recapture even if you never claimed it. You are literally giving money away.