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Yes, you have to compare your gain to the depreciation you took. The part of the gain that represents depreciation taken is taxed at 25%. It is called unrecaptured Sec 1250 gain. The part of the gain that exceeds the depreciation taken is taxed at 20%. Eg., your total gain is 20,000. You have taken depreciation deductions totaling 15,000. You will be taxed at a rate of 25% on the 15,000 and at a rate of 20% on the remaining 5,000 of gain.
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