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 emc011075 Your Own Question
emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 2316
Experience:  IRS licensed Enrolled Agent and tax instructor
62958156
Type Your Tax Question Here...
emc011075 is online now
A new question is answered every 9 seconds

I bought 7 unit apartment in 2003 and I have total

Customer Question

I bought 7 unit apartment in 2003 for 350000 and I have total of 125000 for depreciation.
I am selling this as installment sales for 500000 with 100000 down 400000 6% interest 30yr payment.
About recapturing 125000 depreciation;
Do I have to take whole 125000 as ordinary income this yr?
Or can I divide this into as installment sale rate?
Submitted: 1 year ago.
Category: Tax
Expert:  emc011075 replied 1 year ago.
Hi. My name is ***** ***** I will be happy to help you.
Depreciation recapture has to be claimed in the year of the sale, regardless if the property is sold on installment or strait sale.
http://www.irs.gov/publications/p537/ar02.html#en_US_2014_publink1000221670
I am sorry I know it is not the answer your hoped for. Let me know if you have any questions.
Expert:  emc011075 replied 1 year ago.
I see you read my respond. Any questions? Is there anything else I can help you with today?
And if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.