2026 Depreciation Recapture Calculator

Background.

The practical question behind 2026 Depreciation Recapture Calculator is whether you can estimate the portion of gain attributable to depreciation and apply an entered maximum unrecaptured-section-1250 rate. In this context, for depreciable real property, the relevant gain is capped by both realized gain and depreciation deductions. The calculator therefore applies “potential unrecaptured section 1250 gain = min(realized gain, accumulated depreciation); maximum tax uses the entered capped rate.”

The editable entries are realized gain on the disposition, accumulated depreciation potentially treated as unrecaptured section 1250 gain, 2026 maximum unrecaptured section 1250 gain rate. Use values from the document or measurement that governs this 2026 depreciation recapture question; the defaults are only the worked fixture below. Straight section 1250 recapture, unrecaptured gain, capital-gain rate, installment sales and state tax require return-level analysis. That 2026 depreciation recapture boundary is part of the answer, not a generic disclaimer.

IRS Publication 544, Sales and Other Dispositions of Assets; section 1250 gain and depreciation recapture documents the convention or governing rule used here. The 2026 depreciation recapture output is a transparent scenario under those facts: it does not manufacture an unentered market price, professional determination, carrier quote, legal eligibility finding or locally adopted code value.

What is 2026 depreciation recapture calculator?

2026 Depreciation Recapture is the relationship behind this decision: for depreciable real property, the relevant gain is capped by both realized gain and depreciation deductions. On this page it means potential unrecaptured section 1250 gain = min(realized gain, accumulated depreciation); maximum tax uses the entered capped rate. Straight section 1250 recapture, unrecaptured gain, capital-gain rate, installment sales and state tax require return-level analysis; that is the line between the reported quantity and a broader real estate analysis.

How to use this calculator.

1. 01Confirm that “potential unrecaptured section 1250 gain = min(realized gain, accumulated depreciation); maximum tax uses the entered capped rate” matches the 2026 depreciation recapture convention you need.
2. 02Replace the fixture values for realized gain on the disposition, accumulated depreciation potentially treated as unrecaptured section 1250 gain, 2026 maximum unrecaptured section 1250 gain rate with dated values from the governing record.
3. 03Keep all currencies, measurement units and time periods on the same basis before calculating.
4. 04Read potential unrecaptured section 1250 gain together with this boundary: Straight section 1250 recapture, unrecaptured gain, capital-gain rate, installment sales and state tax require return-level analysis.

The formula.

The calculation uses potential unrecaptured section 1250 gain = min(realized gain, accumulated depreciation); maximum tax uses the entered capped rate. In this 2026 depreciation recapture model, the entered terms are realized gain on the disposition, accumulated depreciation potentially treated as unrecaptured section 1250 gain, 2026 maximum unrecaptured section 1250 gain rate. For depreciable real property, the relevant gain is capped by both realized gain and depreciation deductions, which is why the relationship is presented under this name rather than as a universal alternative. Straight section 1250 recapture, unrecaptured gain, capital-gain rate, installment sales and state tax require return-level analysis. Calculations keep full decimal precision through the relationship and round only the returned display values.

A worked example.

Frequently asked questions.

References& sources.

1. [1]IRS Publication 544, Sales and Other Dispositions of Assets; section 1250 gain and depreciation recapture. Retrieved 2026-08-07. access: open unless marked otherwise.
2. [2]U.S. Internal Revenue Service. Publication 946, How To Depreciate Property. Retrieved 2026-08-07. independence: primary; access: open.
3. [3]U.S. Internal Revenue Service. About Schedule D (Form 1040), Capital Gains and Losses. Retrieved 2026-08-07. independence: primary; access: open.
4. [4]U.S. Internal Revenue Service. Topic no. 704, Depreciation. Retrieved 2026-08-07. independence: primary; access: open.
5. [5]U.S. Internal Revenue Service. About Form 4797, Sales of Business Property — depreciation recapture reporting. Retrieved 2026-08-07. independence: primary; access: open.