Recaptured Depreciation and CG

General Real Estate Investing
1

What is recaptured depreciation when refering to the 1031 calculator?

Also I have searched for the number of years an investment property must be held before taxs switch from short term capital gains (rate of income tax) and long term capital gains (15%). I have seen both 1 year and 2 years as an answer. Can someone please clarify which is correct.

Thanks.

2
What is recaptured depreciation when refering to the 1031 calculator?
I don't know anything about the 1031 "calculator" you mention. I can however, help you define terms.

Recaptured depreciation is that depreciation taken on a depreciable asset for which taxes have already been assessed. For example, let’s say you do a 1031 exchange and trade down in value. Only a portion of your profit will be sheltered by the exchange because you are trading down in value. The amount that you trade down is realized as a taxable capital gain. Since any taxable profit on a sale of depreciable property is first applied to depreciation recapture, the amount of the taxable profit due to depreciation will be recaptured.

Once the depreciation has been recaptured, the amount of recaptured depreciation is added to the cost basis of the replacement property.

Also I have searched for the number of years an investment property must be held before taxs switch from short term capital gains (rate of income tax) and long term capital gains (15%). I have seen both 1 year and 2 years as an answer. Can someone please clarify which is correct.
Neither is correct. The minimum holding period to qualify for long term capital gains treatment is one year AND one day. A shorter holding period gets short term capital gains treatment.

When referring to your primary residence, in the five years prior to sale, an aggregate of two years of ownership and occupancy as your primary residence is required for your sale profit (uo to $250K per taxpayer) to be excluded from capital gains taxes. There are other qualification requirements, too. This exclusion only applies to your primary residence. Fail to meet the two year rules for tax free profit, then your profit gets the long or short term capital gains treatment applicable to your holding period.