What Is Depreciation Recapture? (The IRS Wants Those Write-Offs Back) (Real Estate Explained #6)

Hank just sold Star Coffee and celebrated a big profit… then an IRS letter showed up: depreciation recapture. In plain English, here’s what that means, why it can cost up to 25% (and more on some cost-seg parts), how Jake’s “take the check” plan ate into his bottom line, and how Hank plans ahead with a 1031 exchange to push most of that tax down the road.

Texas has no state income tax — but federal tax still applies.

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Dan Cooper | Cooper Land Company | Licensed Texas Real Estate Broker #594068
Dan@CooperLandCompany.com
cooperlandcompany.com

Education only. Not tax or legal advice. Hank and Jake are hypothetical. Confirm any plan with your own CPA before you sell.

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