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Fiscal Year 2023 Revenue Proposal: How Does the Biden Administration’s Proposal Impact the Real Estate Industry?

KROST

Tax Depreciation Recapture At Ordinary Income Rate. Under current tax law, unrecaptured Section 1250 gain, which in most cases is a depreciation deduction taken on real property, is taxed at a flat rate of 25% for non-corporate taxpayers. Tax Carried Interest in Real Estate Partnerships as Ordinary Income.