Follow the default numbers.
With sale price of $500,000, original tax basis of $250,000, the model gives unrecaptured §1250 tax estimate: $15,000.
The formula is unrecaptured §1250 gain = lesser of positive gain and depreciation. Open the breakdown to trace expenses and assumptions. Change one input at a time to see how your decision changes. This example uses scenario inputs; it is not an offer, tax bill, appraisal or legal determination.
Unrecaptured §1250 is not always 25%
Straight-line real-property depreciation can create unrecaptured Section 1250 gain on a profitable disposition. The calculator limits that portion to positive gain and the depreciation entered, then applies the chosen rate capped at twenty-five percent. Twenty-five percent is a maximum, not a mandatory flat rate for every seller. The remaining gain is handled separately.
Allowed or allowable depreciation matters
Basis is reduced by depreciation that was allowed or that should have been claimed. Entering only deductions actually reported can understate gain when depreciation was missed. Suspended losses and corrections to prior returns require a professional review. The tool does not determine ordinary Section 1250 recapture from accelerated depreciation or Section 1245 recapture on short-life components.
A 1031 exchange changes recognition
A qualifying like-kind exchange can defer some gain, subject to boot and other requirements. That is different from erasing depreciation history. Replacement basis carries deferred gain forward. Compare the exchange page with an outright sale, and involve a qualified intermediary before the relinquished property closes. Receipt of proceeds can undermine eligibility.
Keep your assumptions with the result
Save the calculation to your deal file to reuse compatible inputs in another tool. The file stays in this browser on this device. Download the CSV to open the complete inputs, results and schedule in Excel or Google Sheets. Use PDF to print the report or save it as a PDF. A share link includes entered financial figures in its URL, so use it only with people you intend to share those numbers with.