Calculating Depreciation Recapture Under IRC 1245 and 1250: Minimizing Tax Through Transaction Planning
Note: CLE credit is not offered on this program
Recording of a 110-minute CPE webinar with Q&A
This webinar will provide an in-depth explanation of depreciation recapture rules, focusing on the technical calculations and planning opportunities of the recapture provisions. The speakers will explore IRC 1245 and 1250, which set out the rules for recapture based on various types of assets.
Outline
- Depreciation recapture provisions and rules
- Recapture against real estate
- Recapture against business equipment and other assets
- Planning opportunities
- Transaction timing opportunities
- Transaction structure
- Installment sales
- Like-kind (Section 1031) exchanges
- Component allocations
Benefits
The panel will address these and other notable issues:
- Applicable depreciation recapture rules for Sections 1245 and 1250
- The distinction between depreciation recapture and unrecaptured Section 1250 gains
- Preparing calculations and estimates of recapture gains recharacterized as ordinary income or Section 1250 gains
- Planning opportunities to manage and reduce the tax arising from recapture
- Differences in treatment between structuring a business disposition as a stock sale vs. an asset sale
Faculty

Michael Plaks
Enrolled Agent
REI Tax Firm
Mr. Plaks has been in private practice since 1996, providing tax preparation, consulting, and IRS representation... | Read More
Mr. Plaks has been in private practice since 1996, providing tax preparation, consulting, and IRS representation services to real estate businesses. He is a national authority on real estate taxation, an Amazon best-selling author, an award-winning speaker, and a frequent presenter for real estate organizations and fellow tax practitioners. Contact him via www.MichaelPlaks.com
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Dawn Polin, CPA
Senior Manager
Cherry Bekaert
Ms. Polin focuses primarily on cost segregation studies, energy studies, and recently implemented tangible property... | Read More
Ms. Polin focuses primarily on cost segregation studies, energy studies, and recently implemented tangible property regulations, as well as the federal and multistate taxation of closely-held and private equity/venture capital-owned companies
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