How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Wallstreet Esq. Your Own Question
Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 585
Experience:  10 years experience
Type Your Tax Question Here...
Wallstreet Esq. is online now
A new question is answered every 9 seconds

If I do a partial 1031 exchange coupled with an installment

Customer Question

If I do a partial 1031 exchange coupled with an installment sale, how do I treat the depreciation recapture. I sold a building for $1,000,000. Buyer put $600,000 down and I carried a note for $400,000 @6% interest only for 5 years. Purchased property for $620,000. Depreciation recapture is 132,000. Can the depreciation recapture be rolled into the partial exchange, either fully or partially, or must I pay the taxes as ordinary income on the depreciation since it was not a full 1031. Also, how do I report a partial exchange on the 8824.. Darrell
Submitted: 5 years ago.
Category: Tax
Expert:  MequonCPA replied 5 years ago.
Hi and welcome to JustAnswer:

Has the sale closed?

Is the depreciation recapture on real estate taxable at the higher capital gains rates.