I’ve seen Spidell’s webinars/seminars that discuss Opportunity Zone benefits but I haven’t seen any that address how depreciation recapture is handled. I’m seeing various discussions other places, mostly inconsistent. Does Spidell have something that discusses it?
Capital gains that are eligible for the deferral include amounts treated as capital gains (such as boot from an IRC §1031 exchange, mutual fund capital gain dividends, net IRC §1231 gains, and unrecaptured IRC §1250 gains). Gains not eligible for deferral include IRC §§1245 and 1250 depreciation recapture (taxed as ordinary income).