Depreciation Recapture Explained: How It's Taxed in 2026

What is depreciation recapture, in plain terms?

Every year you own a rental, the tax code lets you deduct a slice of what you paid for the building. On a residential property the slice is the building cost divided by 27.5 years. On commercial property it is 39 years. Land never depreciates. Those deductions are real money: they offset your rental income, and often they are the reason a property throws off cash while showing little or no taxable income.

The catch is that each dollar of depreciation also lowers your tax basis by a dollar. When you sell, gain is the amount you realize minus your adjusted basis, so a lower basis means a bigger gain. "Recapture" is the name for the rules that decide how that depreciation-driven slice of the gain gets taxed. The government let you deduct it against income at ordinary rates on the way in; on the way out, it wants more than the long-term capital gains rate on that slice.

I studied applied math, and I still find it easiest to think of recapture as a timing trade with a rate spread. You took deductions early, at whatever your marginal rate was in those years. You pay back later, at the recapture rate in the year of sale. Whether that trade worked out depends on the two rates, on how many years passed, and on whether you ever have to pay it back at all.

Which kind of depreciation recapture applies to me?

There are two regimes, and a single sale often triggers both.

A note on vocabulary, because it trips up even some preparers. Real property depreciated straight-line after 1986 generally has no "§1250 recapture" in the strict sense. Section 1250 itself only converts to ordinary income the depreciation taken in excess of straight-line, and residential and commercial buildings have been straight-line for decades. What applies instead is the 25% rate on "unrecaptured §1250 gain" under §1(h). People call both things "recapture." I will too, but the distinction matters when you read a return.

How is unrecaptured §1250 gain taxed in 2026?

The 25% figure is a ceiling, not a flat rate. The portion of your gain equal to straight-line depreciation on the building is taxed at your ordinary rate if that rate is below 25%, and at 25% if your ordinary rate is higher. The One Big Beautiful Bill Act, signed July 4, 2025, did not change this rate, and it kept the seven ordinary brackets that were set to expire after 2025.

The part people miss is the stacking order. When the IRS computes tax on a year with a property sale, it layers income like this:

1. Ordinary income (wages, interest, net rental income, §1245 recapture) at the bottom.
2. Unrecaptured §1250 gain next, taxed at ordinary rates up to the 25% cap.
3. Remaining long-term capital gain on top, taxed at 0%, 15% or 20% depending on where it lands.

Because the 25% gain sits underneath the capital gain, it uses up room in the lower capital gains brackets. A large depreciation figure can push appreciation that would have been taxed at 15% up into the 20% bracket.

Here are the 2026 federal thresholds that matter for this math, from the IRS's inflation adjustments in Rev. Proc. 2025-32:

The 2026 standard deduction is $16,100 for single filers and $32,200 for married couples filing jointly.

Where does the 3.8% net investment income tax fit?

The net investment income tax (NIIT) is a separate 3.8% tax on the lesser of your net investment income or the amount by which your modified adjusted gross income exceeds $200,000 (single), $250,000 (married filing jointly) or $125,000 (married filing separately). Those thresholds are written into the statute and are not indexed for inflation, so every year more sellers cross them.

Gain from selling a rental you hold as an investment is generally net investment income, and that includes both the recapture slice and the appreciation. If you qualify as a real estate professional and the rental is part of a trade or business in which you materially participate, the gain may be excluded from NIIT. Most owners I talk with who are selling a property they've held passively for years do not qualify, and owners of fractional interests such as DSTs almost never do.

The "lesser of" rule matters in a big sale year. Your gain inflates both numbers, so in practice NIIT usually lands on most of the gain, but not always all of it. The worked example below shows the effect.

Worked example 1: a couple selling an apartment building held 12 years

Say you and your spouse bought a small apartment building in 2014 for $1,500,000. The county assessor's ratio put $450,000 of that on the land and $1,050,000 on the building. Straight-line over 27.5 years, that's about $38,182 a year. To keep the round numbers readable I'll ignore the mid-month convention and call it 12 full years, so accumulated depreciation is $458,182.

In 2026 you sell for $2,600,000 and pay $130,000 in commissions and closing costs, so the amount realized is $2,470,000.

• Adjusted basis: $1,500,000 − $458,182 = $1,041,818
• Total gain: $2,470,000 − $1,041,818 = $1,428,182
• Unrecaptured §1250 gain: $458,182
• Remaining long-term capital gain: $970,000 (which is simply $2,470,000 − $1,500,000)

Your other taxable income for the year, after deductions, is $180,000, mostly wages. Your modified adjusted gross income before the sale is about $212,200.

Ordinary income, $0 to $180,000: 10% on the first $24,800 ($2,480), 12% on the next $76,000 ($9,120), 22% on the last $79,200 ($17,424). Total $29,024. You'd owe this with or without the sale.

Unrecaptured §1250 gain, stacked from $180,000 to $638,182: - $31,400 at 22% (up to $211,400): $6,908 - $192,150 at 24% (up to $403,550): $46,116 - $234,632 at 25%, because the 32% and 35% brackets are capped at 25%: $58,658 - Total: $111,682, an average of about 24.4% on the $458,182

Long-term capital gain, stacked from $638,182 to $1,608,182: the 20% bracket for joint filers starts at $613,700, and the depreciation slice already pushed you past it. All $970,000 is taxed at 20%: $194,000.

NIIT: modified AGI is about $1,640,382. The excess over $250,000 is $1,390,382. Net investment income is $1,428,182. NIIT applies to the lesser, $1,390,382, at 3.8%: $52,835.

Federal tax caused by the sale: $111,682 + $194,000 + $52,835 = $358,517. Before California or any other state.

What did the depreciation cost? If the same $458,182 had been taxed as regular long-term capital gain at 20%, the tax on it would have been $91,636. Under the actual rules it was $111,682. The spread is about $20,000; NIIT applies either way. Over 12 years, those same deductions probably saved you more than $111,682 at ordinary rates, depending on your brackets in those years. In most of the sales I see, the trade still favored taking the depreciation. The point of the example is that recapture is a bill, but rarely a reason to regret depreciating.

Worked example 2: a single seller in a lower bracket

Now say you're single, your taxable income is $60,000 before the sale, and you sell a condo rental with $80,000 of accumulated depreciation and $120,000 of appreciation, for a $200,000 total gain.

• Ordinary income, $0 to $60,000: $1,240 + $4,560 + $2,112 = $7,912 (no change from the sale)
• Unrecaptured §1250 gain, $60,000 to $140,000: $45,700 at 22% ($10,054) and $34,300 at 24% ($8,232), total $18,286. You never reach the 25% cap. Your average rate on the recapture slice is about 22.9%.
• Capital gain, $140,000 to $260,000: all inside the 15% bracket (which runs to $545,500 for single filers): $18,000.
• NIIT: modified AGI is about $276,100, so the excess over $200,000 is $76,100, which is less than the $200,000 of net investment income. NIIT is $76,100 × 3.8% = $2,892.

Federal tax from the sale: $39,178. Calling recapture "a 25% tax" would have overstated this seller's bill on that slice by about $1,700. The cap matters to high earners; for everyone else, the ordinary bracket governs.

What does "allowed or allowable" mean, and why does it matter if I never took depreciation?

Under §1016(a)(2), your basis drops by the depreciation that was allowed or allowable, whichever is greater. "Allowable" means the depreciation you were entitled to take, whether or not you claimed it. If you owned a rental for ten years and your preparer never put the depreciation on Schedule E, the IRS still treats your basis as reduced when you sell. You get the bill for recapture without ever having had the deduction.

I see this most often with properties that were once a primary residence and got converted to a rental, with inherited rentals where nobody set up a depreciation schedule, and with self-prepared returns. It also happens with improvements: a new roof gets expensed in one year when it should have been capitalized and depreciated, or never gets recorded at all.

The fix is usually a change in accounting method on IRS Form 3115 rather than amending old returns. If you used an impermissible method (including no depreciation) for two or more years, you've adopted a method, and the IRS generally wants it changed on Form 3115, with a §481(a) adjustment that lets you deduct the cumulative missed depreciation in the year of change. A one-year error can usually be fixed with an amended return. Your CPA should look at this before the sale year closes, because the catch-up deduction can offset a meaningful amount of income in a year that is already heavy. Whether the change can be made in the year of sale itself depends on the IRS procedure in effect, and your CPA will confirm the mechanics.

How do cost segregation and bonus depreciation change recapture?

A cost segregation study breaks a building's cost into pieces with shorter lives: 5-year and 7-year personal property (appliances, carpet, specialty electrical, some cabinetry), 15-year land improvements (parking lots, landscaping, site lighting), and the remaining 27.5- or 39-year structure. The 5- and 7-year pieces are §1245 property. The 15-year land improvements are technically §1250 property, but bonus depreciation on them is depreciation in excess of straight-line, which §1250 recaptures as ordinary income, so at sale they behave much like §1245 property. The examples below group them together for simplicity.

Bonus depreciation applies to property with a recovery period of 20 years or less. It does not apply to the building shell. Under the Tax Cuts and Jobs Act, bonus was 100% for property placed in service through 2022 and was phasing down: 80% in 2023, 60% in 2024, 40% in 2025, 20% in 2026. The One Big Beautiful Bill Act changed that. For property acquired after January 19, 2025, 100% bonus depreciation is now permanent. IRS Notice 2026-11 provides interim guidance: property is treated as acquired when you sign a written binding contract, and for your first tax year ending after January 19, 2025, you may elect 40% instead of 100%, or elect out by class. Property under a binding contract signed before January 20, 2025 stays on the old phase-down schedule.

The 2025 law also created a new 100% deduction for "qualified production property," a category of nonresidential real property used in manufacturing and similar production. It is aimed at owner-operators, and property you lease to someone else does not qualify, so I don't expect it to matter to most rental owners. If you own and operate a production facility, ask your CPA about it, along with its recapture rules.

Here's how cost segregation shows up at sale. Say you bought a commercial building in 2022 for $3,000,000: $600,000 land, $2,400,000 depreciable. A cost segregation study moved $480,000 into 5-, 7- and 15-year property, and you took 100% bonus on it in 2022. The remaining $1,920,000 depreciates over 39 years, about $49,231 a year. You sell in mid-2026, after roughly 4.5 years, for $3,400,000 net of costs. Building depreciation is about $221,538.

You and the buyer agree, with an appraiser's help, that the short-lived components are worth $250,000 at sale. That allocation drives the result:

• §1245 property: basis $0, allocated price $250,000. Gain $250,000, all of it §1245 recapture, taxed as ordinary income. The other $230,000 of bonus you took is never recaptured, because those assets lost that much value.
• Real property: basis $600,000 + $1,920,000 − $221,538 = $2,298,462, allocated price $3,150,000. Gain $851,538: $221,538 unrecaptured §1250 gain at up to 25%, and $630,000 long-term capital gain.
• Total gain $1,101,538, which ties to $3,400,000 minus a total adjusted basis of $2,298,462.

At a 37% marginal rate, the §1245 slice costs $92,500 in federal ordinary tax plus NIIT. In 2022 the $480,000 of bonus saved up to $177,600 at 37%. Four years of use of that money, and a permanent benefit on the $230,000 that never came back. That's the honest case for cost segregation.

The honest case against: the allocation at sale is a negotiation, and sellers often skip it. If the purchase agreement is silent, you're left to support an allocation on your own, and a high value on the short-lived assets turns more of your gain into ordinary income. If you did cost segregation, plan the sale allocation before you sign the contract, not when your CPA is preparing the return.

Does the §1231 look-back rule affect recapture?

It can, and almost nobody mentions it. Gain on business or rental property held more than a year is §1231 gain (the long-term capital gain slice and the unrecaptured §1250 slice both start life as §1231 gain). If you had net §1231 losses in any of the prior five years that haven't been "recaptured" yet, an equal amount of this year's net §1231 gain is taxed as ordinary income instead of capital gain. A loss on a rental sold in 2022 can come back to raise the tax on a gain in 2026. Your preparer tracks this on Form 4797; ask whether you have any unrecaptured §1231 losses before you model a sale.

How do state taxes treat depreciation recapture?

Most states with an income tax don't have a separate capital gains rate, so the recapture slice and the appreciation are taxed the same way as wages. California is the example I deal with most, since I'm based in San Francisco. California taxes capital gains as ordinary income, its top rate is 12.3%, and an additional 1% mental health services tax applies to taxable income over $1 million, for a 13.3% top marginal rate. In worked example 1, a California couple would pay an average of roughly 11% on the $1,428,182 gain, because it climbs through the 9.3% to 12.3% brackets plus the 1% surcharge above $1 million, something in the range of $150,000 to $165,000, on top of the federal $358,517. I'm giving a range rather than a precise figure because California's brackets are indexed separately and your CPA should run the actual return.

Three state wrinkles come up regularly:

• Withholding at closing. California generally requires withholding of 3⅓% of the gross sales price on California real estate sales, reported on FTB Form 593, unless an exemption applies. A seller may elect withholding based on estimated gain instead (12.3% of the gain for individuals). In a deferred 1031 exchange, the sale is exempt at closing, but if you receive more than $1,500 of cash or other property, the qualified intermediary must withhold; if the exchange fails, the intermediary withholds 3⅓% of the sales price.
• Nonresident taxation. A state taxes gain on real property located there even if you live elsewhere. Sell a building in Oregon while living in Nevada and you file in Oregon.
• California's tracking of out-of-state exchanges. If you exchange California property for property outside California, you must file FTB Form 3840 every year until you sell the replacement property in a taxable transaction. California wants to tax the deferred California gain, including the depreciation you took while owning the California property, when that day comes.

How does a 1031 exchange defer depreciation recapture?

In a valid 1031 exchange, you don't recognize gain, and recapture is part of gain. The depreciation you took on the relinquished property doesn't disappear. It carries into the replacement property through a lower basis, and it's waiting there for the day you sell in a taxable transaction. Under current law, if you still hold the property (or the last property in a chain of exchanges) at death, your heirs generally receive a basis stepped up to fair market value under §1014, and the deferred gain, including the depreciation-driven part, is not taxed to anyone. That's current law, and Congress can change it.

This is why recapture weighs more on long-term owners than the textbook examples suggest. An owner who has been depreciating a property for 20 years has a very low basis, and the recapture slice alone can be a six-figure federal bill. Exchanging keeps that money working, at the cost of keeping your capital in real estate and inheriting the old basis.

Two things can still trigger tax in an exchange:

• Boot. Cash you receive, or a reduction in debt that you don't replace, is boot and is taxable to the extent of your gain. When boot triggers gain, it is taxed in the same order as on a sale: §1245 recapture first, then unrecaptured §1250 gain, then capital gain. So partial boot tends to come out at higher rates than people expect.
• §1245 recapture under §1245(b)(4). This is the edge case.

When can §1245 recapture be triggered in a 1031 exchange?

Since 2018, §1031 applies only to real property. Treasury's 2020 regulations (Treas. Reg. §1.1031(a)-3) define real property broadly for exchange purposes: land, buildings, inherently permanent structures, and structural components, judged asset by asset. That definition doesn't line up with the depreciation categories. Many items a cost segregation study puts in 5- or 15-year §1245 classes (dedicated wiring, gas and water lines, some built-ins) are still real property for 1031 purposes. Truly movable items (furniture, freestanding appliances) are not.

That creates two separate problems:

1. Personal property that isn't real property isn't part of the exchange at all. If you sell an apartment building with $40,000 of furniture, that furniture is sold in a taxable sale, and its gain (generally all §1245 recapture) is taxable, even though the building goes into the exchange.
2. §1245 property that is real property can be exchanged, but §1245(b)(4) limits deferral. In an exchange, the §1245 recapture you must recognize can't exceed the gain you otherwise recognize (boot) plus the fair market value of non-§1245 property you receive for your §1245 property. In practice, the §1245 property you give up is matched against the §1245 property you get. If you receive less, the shortfall was paid for with non-§1245 property (building or land), and recapture comes out up to that amount. To keep all of it deferred, you generally need to receive at least as much §1245 property, by value, as the recapture you're carrying.

Here's what that looks like. Take the cost-segregated building from the earlier example, with $250,000 of §1245 recapture potential. You exchange into a replacement property worth $3,400,000 and take no boot.

• If the replacement has never been cost-segregated, so on paper it's all land and §1250 building, you've received no §1245 property for your §1245 property. The full $250,000 can be recognized as ordinary income, even though the exchange defers everything else.
• If the replacement's purchase price allocation shows $100,000 of §1245 property, about $150,000 of recapture can be recognized.
• If it shows $250,000 or more, the recapture can stay deferred.

The statute and Treas. Reg. §1.1245-4(d) are more technical than this summary, and the answer for a real exchange turns on the allocation your CPA can support.

The fix is planning. Get a preliminary allocation of the replacement property's price before you close. If you're going into a DST, ask the sponsor for the trust's purchase price allocation and whether a cost segregation study was done, so your CPA can see how much §1245 property your share represents. Exchanges out of heavily cost-segregated properties into land-heavy replacements, such as a net-leased building on an expensive pad site, are where I'd expect this to bite.

Why doesn't an installment sale defer recapture?

An installment sale lets you report gain as you collect payments. It does not let you defer recapture income. Under §453(i), all "recapture income" (§1245 recapture, and any §1250 ordinary recapture) is recognized in the year of sale, even if you receive no cash that year. The recaptured amount is then added to your basis, so it isn't taxed again as payments arrive.

That can produce an ugly cash mismatch. Back to the cost-segregation example: if you sold that building for $3,400,000 with $340,000 down and a seller-carried note for the rest, the $250,000 of §1245 recapture would be fully taxable in 2026 at ordinary rates, while you received only $340,000 of cash, much of which also carries other gain.

Unrecaptured §1250 gain is different. It isn't "recapture income" under §453(i), so it is recognized as payments come in. But Treas. Reg. §1.453-12 says the unrecaptured §1250 gain is taken into account first, before the 15% or 20% gain. The regulation's own example: an $8,000 gain, of which $3,000 is unrecaptured §1250 gain, collected in ten $800 installments. The first three installments are taxed entirely as 25%-rate gain, the fourth is split ($600 at 25%, $200 at the capital gains rate), and the last six are taxed at the capital gains rate. So installment reporting defers the 25% slice somewhat, but front-loads it.

State rules follow their own track. California requires buyers in installment sales to withhold on the down payment and on principal payments, unless the seller elects out and reports the full gain up front.

How the calculator works

The calculator estimates the federal and state tax on a taxable sale and splits it into the recapture pieces and the appreciation. It does not model an exchange, an installment sale, or a partial disposition. It's a planning estimate; your CPA's return is the answer.

Inputs

• Purchase price, and the share allocated to land (land is not depreciated)
• Capital improvements, with the year placed in service
• Depreciation taken: either entered directly from your depreciation schedule, or estimated from the property type (27.5-year residential or 39-year commercial) and years held
• Any cost segregation: the amount reclassified to 5-, 7- or 15-year property, and the value of those components at sale
• Sale price and selling costs
• Filing status, other taxable income for the year, and modified AGI before the sale
• State: a flat estimated rate you enter, since state rules vary

Formula

1. Amount realized = sale price − selling costs
2. Adjusted basis = purchase price + improvements − accumulated depreciation (allowed or allowable)
3. Total gain = amount realized − adjusted basis
4. §1245 recapture = the lesser of depreciation taken on §1245 components and the gain on those components (their value at sale minus their adjusted basis)
5. Unrecaptured §1250 gain = the lesser of straight-line depreciation on the real property and the gain on the real property
6. Remaining §1231 gain = total gain − §1245 recapture − unrecaptured §1250 gain
7. Federal income tax = tax on (other ordinary income + §1245 recapture) at 2026 ordinary rates; then unrecaptured §1250 gain stacked on top at ordinary rates capped at 25%; then remaining gain stacked on top at 0%, 15% or 20% using the 2026 thresholds; minus the tax you'd owe on your other income alone
8. NIIT = 3.8% × the lesser of (net investment income from the sale) and (modified AGI including the sale − your threshold of $200,000, $250,000 or $125,000)
9. State tax = your entered rate × total gain

What it leaves out: the §1231 look-back, suspended passive losses (which are released in a fully taxable sale and can offset a meaningful part of the gain), the alternative minimum tax, state-specific brackets and credits, and the effect of the sale on deductions and credits that phase out with income. Those can move the number, which is why the result is a starting point for a conversation with your CPA.

Risks and limitations

Deferring recapture through a 1031 exchange means buying replacement real estate, and if that replacement is a Delaware Statutory Trust or another securities offering, you take on that investment's risks along with the tax deferral:

• Loss of principal. Real estate values can fall. You can lose some or all of what you invest.
• Illiquidity. DST interests generally can't be sold or redeemed on demand; plan on holding until the sponsor sells the property, often five to ten years, and possibly longer.
• Distributions are not guaranteed. They can be reduced or suspended if the property underperforms.
• Reliance on the sponsor. You have no say in management decisions; the sponsor and its affiliates run the property and decide when to sell.
• Fees and load. Offering costs, commissions and sponsor fees reduce the amount of your money that goes into real estate.
• Leverage. Debt magnifies losses as well as gains, and a lender can foreclose.
• Limited control. DST rules prevent the trust from raising new capital or renegotiating leases and loans, which can limit options if the property runs into trouble.
• Tax-law change. The rules on depreciation, recapture, 1031 exchanges and step-up at death can change. A failed exchange or a later change in law can make deferred tax due.

Deferral is not elimination. Every dollar of recapture you defer is still owed when you sell in a taxable transaction, unless current law on step-up at death still applies when the time comes.

Frequently asked questions

Is depreciation recapture always taxed at 25%?

No. Twenty-five percent is the federal maximum on unrecaptured §1250 gain, the depreciation on the building itself. If your ordinary bracket is lower, that portion is taxed at your ordinary rate (10%, 12%, 22% or 24% in 2026). Depreciation on §1245 components, such as items reclassified in a cost segregation study, is taxed at ordinary rates with no cap, up to 37%. The 3.8% net investment income tax can apply on top of either, and state tax is separate.

Can I avoid recapture by not taking depreciation?

No. Your basis drops by depreciation "allowed or allowable," so the IRS treats you as having taken the depreciation you were entitled to whether you claimed it or not. Skipping depreciation gives you recapture with none of the earlier deductions. If you missed depreciation in past years, your CPA can usually catch it up with a change in accounting method on Form 3115, deducting the cumulative missed amount in one year rather than amending old returns.

Does a 1031 exchange eliminate depreciation recapture?

It defers it. The depreciation carries into the replacement property through a lower basis, and it becomes taxable when you sell in a taxable transaction. Under current law, if you hold the property until death, your heirs generally receive a stepped-up basis and the deferred gain, including recapture, is not taxed. That outcome depends on current law, which can change. Boot received in an exchange is taxed, and recapture comes out first.

Do I pay recapture if I sell at a loss?

Generally not. Recapture is limited to gain. If the amount you realize is less than your adjusted basis, there's no gain, so there's nothing to recapture. A net loss on rental property held more than a year is usually a §1231 loss, which is ordinary, but it can come back under the five-year look-back rule to recharacterize future §1231 gains as ordinary income.

Is depreciation recapture subject to the net investment income tax?

Usually, yes, if you hold the property as an investment and your modified AGI exceeds $200,000 (single) or $250,000 (married filing jointly). The thresholds are not indexed for inflation. NIIT applies to the lesser of your net investment income or your income above the threshold. Real estate professionals who materially participate in the rental activity may be able to exclude the gain; passive owners and DST investors generally can't.

How does cost segregation affect taxes when I sell?

It shifts part of the building's cost into §1245 property, which gets faster depreciation now (100% bonus depreciation for property acquired after January 19, 2025) and ordinary-income recapture later, up to the value of those components at sale. Whether it pays off depends on your tax rates now versus then, how long you hold, how the sale price is allocated, and whether you exchange. Plan the sale allocation with the buyer before you sign.

Does an installment sale spread out recapture?

Only partly. Section 1245 recapture is recognized in full in the year of sale under §453(i), even if you receive little cash that year. Unrecaptured §1250 gain is recognized as payments arrive, but Treas. Reg. §1.453-12 requires it to be taken into account before the lower-rate capital gain, so the early installments carry the 25%-rate gain.

What happens to depreciation recapture when I die?

Under current law, property you own at death generally receives a basis equal to its fair market value at death under §1014. That step-up wipes out the built-in gain, including the depreciation-driven part, so your heirs can sell without paying recapture on the depreciation you took. The 2026 federal estate tax exemption is $15 million per person. All of this reflects current law, which Congress can change.

If you're weighing a sale against an exchange and want to see your actual recapture number next to the alternatives, I'm glad to walk through it with you. Confirm the tax treatment with your CPA or tax attorney and your qualified intermediary before you act.

Sources

• IRS adjusts tax brackets, standard deduction for 2026 (CPA Practice Advisor, summarizing Rev. Proc. 2025-32)
• IRS updates capital gains tax thresholds for 2026 (Kiplinger)
• IRS Notice 2026-11: interim guidance on permanent 100% bonus depreciation (BPM summary)
• The Net Investment Income Tax (Congressional Research Service, IF11820)
• 26 CFR §1.453-12, allocation of unrecaptured section 1250 gain reported on the installment method (Cornell LII)
• Like-kind exchange wrinkle with cost segregation: §1245(b)(4) and Treas. Reg. §1.1031(a)-3 (WCG CPAs)
• Deductions in like-kind exchanges and cost segregation (The Tax Adviser)
• Correcting missed depreciation using Form 3115 (NATP)
• 2026 Instructions for Form 593, Real Estate Withholding Statement (California FTB)