Should I sell my rental now or hold to avoid depreciation recapture tax?

[Ethan.J]

I’m trying to decide whether to sell my first rental property now or hold it for a few more years. The market in my area seems high, but I’m worried about the tax hit from depreciation recapture eating up a big chunk of my profit if I sell.

[Eric_R]

I sold a rental last year. The depreciation recapture hit was bigger than I expected, and the cash after tax wasn’t as juicy as the headline price suggested. That sting made me rethink timing even when the market looked great.

[Mia.S]

The market around here is definitely hot, rents are up, and property values have climbed. I keep running numbers and the tax bite still feels like a punch to the gut if I sell now, so I’m leaning toward waiting a bit longer and see how things shake out.

[KennethXP]

Do you feel the tax hit is the real issue here, or is it the opportunity cost of tying up that equity in a single property?

[Paisley46]

I started by chasing higher rents and better cap rates, then got pulled into a side project and forgot to factor in the depreciation angle until it was too late. It reminded me this is not just about price tags but about where the money lands after tax.