Depreciation Recapture taxes
I am about to sell a rental 3-unit property that has had a good bit of depreciation of my purchase price + the depreciation of the improvements I added, new appliances etc.
When I sell the property I am I responsible for paying the depreciation recapture on just the depreciated value of the original purchase price or also the annual depreciation on the improvements I made on the purchase. And if it is both is there anyway to avoid the latter?
The buyer isn't doing any type of cost segregation.