How To Avoid Depreciation Recapture

How To Avoid Depreciation Recapture. Overview by Chris at Hauseit® (www.hauseit.com).
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Depreciation recapture is a 25% tax on the lifetime depreciation taken on a rental property, taxed when it's sold for a realized gain.
However, there are several easy ways investors can avoid depreciation recapture tax that are very common.
The first is to simply not sell and instead do a 1031 exchange. You have to follow rules & guidelines, including strict timing rules, but essentially you sell your investment property and roll the proceeds into another investment property. Thus you traded or exchanged, vs sold. This way, tax liabilities including capital gains and depreciation recapture are deferred.
Another common method is to simply never sell, to hold the property until your death. This way, when you die, the property "steps-up" in basis to its full market value, and is transferred to your estate/heirs at full market value.
That means no one ever had to pay capital gains tax or depreciation recapture tax during your lifetime!
Remember, we never provide any financial advice or tax advice. Please consult your own financial advisor or accountant as always.
We explore this mystery and explain further in the following video.
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[@THEGABNER]

Exactly what I was looking for. Thank you for the clear and concise information.