What is Capital Gains Tax rate on recaptured depreciation?

The capital gains tax rate on recaptured depreciation, often referred to as depreciation recapture, is typically taxed at a maximum rate of 25%. This applies when an asset, such as real estate, is sold for a profit after having taken depreciation deductions during ownership. However, the overall tax implications can vary based on individual circumstances, including income level and other factors, so it's advisable to consult a tax professional for specific guidance.