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Capital gains first.
You look at the cost less depreciation plus improvements to start. The difference in that and the sale price less costs to sell will be your gain or loss. If loss no tax to pay if gain then you pay a rate based on your total income. This could be 0%, 15% or 20% if you held the property for more than 1 year and 1 day.
Depreciation recapture is the USA Internal Revenue Service (IRS) procedure for collecting income tax on a gain realized by a taxpayer when the taxpayer disposes of an asset that had previously provided an offset to ordinary income for the taxpayer through depreciation.
If you dispose of depreciable or amortizable property at a gain, you may have to treat all or part of the gain (even if otherwise nontaxable) as ordinary income. If you sell at a loss then no recapture.
If you wish to read the information
the above link is the best place.
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