1031 exchange in a 1041 depreciation recapture

Technical topics regarding tax preparation.
#1
PHall  
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San Francisco East Bay, CA
A 1041 did a 1031 exchange but have a gain of $49000 because the price of the new property was not higher than the sales price of the old (taking into consideration closing costs on both ends)
Is the first gain depreciation only or how does that work? Capital gain and depreciation recapture. What the is rate of tax on the depreciation recapture inside the trust.
 

#2
PHall  
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220
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Location:
San Francisco East Bay, CA
I am talking about unrecaptured section 1250 gain.
 

#3
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The tax law is unclear. However, a lot of people say (and it makes sense to me) that the recognized gain should first be unrecaptured Sec. 1250 gain before treating any of the gain as a regular LTCG. This would be consistent with the Sec. 453 installment sale rules.
 

#4
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Any depreciation recapture comes from Form 8824 line 21 Ordinary income under the recapture rules. I don't see any mention of unrecaptured 1250 in the instructions.
 


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