🏡 Depreciation Recapture & the Section 121 Exclusion If you’ve ever rented out a room in your home (hello, Airbnb 👋), claimed depreciation, and now you’re thinking of selling, you’ve probably heard the phrase “depreciation recapture.” And if you’re also counting on using the Section 121 exclusion to avoid paying capital gains tax, it’s important to understand how the two interact — because they do, and not always in your favor. Let’s break it all down, the simple, 2025 way. “Success in business...

Can I Deduct Rental Property Losses in 2025? Investing in rental property—whether it’s a cozy single-family home, a multi-unit complex, or a commercial space—can be a bold financial move. It adds diversity to your portfolio, generates potential retirement income, and breaks the dependency on stock market volatility. But when it comes to income taxes? The benefits aren’t always as straightforward. Sure, profits are taxed like regular income (hello, higher tax brackets 😬), but losses? Now that’s where things get tricky—and potentially...