This is most of the depreciation you are taking year one.You can calculate your depreciation recapture by taking the sale price of the asset and subtracting the adjusted cost basis.The adjusted cost basis is what you paid for the asset plus any improvements you made along the way minus the depreciation you took along the way.The profit above this original cost is taxed as a capital gain, but the part linked to depreciation is taxed at a maximum rate of 25% under the unrecaptured gains of section 1250.To recap the tax rates are:- Sec. 1250 real property: 25%- Sec. 1245 property and 15 year 1250 property: Ordinary Tax RatesThere are ways to minimize depreciation recapture especially if you know how to work smart with your CPA.1) Asset Valuation at Time of Sale - Sellers can minimize recapture by reallocating the price of the assets on sale.

Being a NYC resident (originally from Long Island), the price of entry in the area is on the higher end, so I've been considering some options in the NY Capitol region, as well as NJ and CT. 

Paid 77% of the original list price on this new construction home.

I agree with the original poster.

These are 2-bedroom, 1-bathroom properties that I had originally planned to keep in my rental portfolio, but my plans changed.

When I add a new tenant to the lease, the original contract terms remain in place.

Originally posted by @Harish Ananthapadmanabhan:@Jay Hinrichs Thank you for your feedback!

Say my original loan was $500K, my cost basis with improvements is $1M and I cash out refinance with a $1M loan (can I include the interest of the new loan into cost basis since it’s reimbursing me my cost basis)?

Originally posted by @Trevor Fleck:@Eddie Lozada check out Rent to Retirement.

My family and I are originally from Cuba.