Selling rental property or business assets can create unexpected taxes through depreciation recapture. Learn how Sections 1245 and 1250 affect your gain and why Section 1231 does not always produce capital gain treatment.

Section 1231 property often provides the best of both tax worlds: ordinary loss treatment and capital gain treatment. However, many taxpayers overlook the five year lookback recapture rule that can convert current gains into ordinary income. Learn how the rule works before selling business or rental property.