Cost Segregation on 5+ Year Hold: Depreciation Recapture in a 1031 Exchange?

Category: Miscellaneous

1 replies

Original post

I've been running cost segregation studies on my multifamily properties for years now, but I'm in a bit of a tax situation I'm hoping some of the tax professionals here can weigh in on. I'm planning to sell a property I've held for over 5 years and roll it into a 1031 exchange. My question is: how does depreciation recapture work in this scenario when I've already accelerated depreciation with cost segregation? Specifically, I'm curious if there's any way to defer part of that recapture in the exchange. Appreciate any insights or advice from folks who have navigated this before. I'm in the Bay area if it's relevant.

Reply by Bryon Stout

there is no recapture if you 1031, thats the whole point.