ok, I will stop here and digest. And put this away for future reference. Separating the types of property (1250 vs other) makes much sense (not that taxes are supposed to make much sense). This is really helpful.
I agree with LoTax, you've got the two switched.
The worksheet in the IRS instructions for Form 1040 Sched. D Line 19 is titled "Unrecaptured Section 1250 Gain Worksheet" and will apply to the vast majority of sales of residential rental properties in the current year.
I realize this semantic detail is not very helpful to most taxpayers, but it is still correct to use the term "Unrecaptured Section 1250 Gain" for the portion of the gain on a depreciated rental property that is the lesser of (1) the computed gain or (2) the depreciation claimed (reduced by any Sec. 1250 recapture of accelerated depreciation, which I agree is fairly uncommon these days).
-Mark Bole
OK I guess I do have them reversed. Thanks to both of you.
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