Selling a rental & depreceation recapture?
Does anyone know how depreceation recapture works?
I am selling a home for the first time and have no idea how this works. I purchased this property in 2008 as a primary residence and turned it into a rental a year later. I purchsed it for $180K and expect to sell it for $210k. I have taken $21k in depreation over the time it has been a rental. I know I will have to pay capital gains tax of 15%/20% on the relized gain of about $20k after about $10k in commision. Do I have to pay tax on the deprecation I have taken as well? If so what percentage?
I would really appreciat some help on this I'm clueless
Thanks