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Real Estate InvestorGenerated accuracy model review: 2026-05-06
Depreciation Recapture Calculator accuracy and testing
This page documents how Calwarden builds trust for this calculator: source notes, regression-style default tests, limitations, assumptions, unit handling, rounding, and visible change history.
Formula source
- Recapture tax = accumulated depreciation x recapture rate. Optional capital gains tax = max(0, sale price - selling costs - adjusted basis - accumulated depreciation) x capital gains rate.
Test cases
Default input regression check
Generated from the checked-in default inputs and calculate function.
Inputs
- Accumulated Depreciation: $120,000
- Recapture Tax Rate: 25%
- Sale Price: $650,000
- Adjusted Tax Basis: $420,000
- Selling Costs: $39,000
- Capital Gains Tax Rate: 15%
Expected outputs
- Estimated Recapture Tax: $30,000.00
- Estimated Taxable Gain: $191,000.00
- Optional Capital Gains Tax: $10,650.00
- Total Estimated Tax: $40,650.00
Known limitations
- This simplified model does not handle land/building allocations, unrecaptured Section 1250 gain limits, ordinary income recapture, passive activity rules, state taxes, installment-sale treatment, AMT, or 1031 exchange mechanics. Consult qualified professionals.
Assumptions
- All values, dates, rates, and tax assumptions are entered by the user.
- Calculations run locally in your browser and are not stored by Calwarden.
- Results are planning estimates only and are not tax, legal, accounting, lending, or investment advice.
Unit handling
- Accumulated Depreciation accepts values in $.
- Recapture Tax Rate accepts values in %.
- Sale Price accepts values in $.
- Adjusted Tax Basis accepts values in $.
- Selling Costs accepts values in $.
- Capital Gains Tax Rate accepts values in %.
- Estimated Recapture Tax is displayed as currency.
- Estimated Taxable Gain is displayed as currency.
- Optional Capital Gains Tax is displayed as currency.
- Total Estimated Tax is displayed as currency.
Rounding rules
- Number displays use up to 2 decimal places in the calculator UI.
- Currency outputs are displayed with standard US dollar formatting.
- Input precision follows configured step values where provided.
Version history
1.0.0 - 2026-05-06
Generated accuracy and testing page from the current depreciation-recapture-calculator calculator definition.
Change log
2026-05-06
Published default regression test documentation and metadata fallbacks for Depreciation Recapture Calculator.
Calculator transparency
Accuracy pages are generated from checked-in calculator definitions and can be upgraded with curated review metadata over time.