Your name saw this post on The ActiveRain Real Estate Network and thought it might be of interest to you. Please see the link below to review the post.

Capital Gains Taxes and Recapture - Do they just go away?
Today I spoke with an Investor who is facing the realities of today's real estate market.  This investor has owned rental income property for the last 20 years.  Having completed one 1031 Exchange into the property currently owned, the question that was posed was:  I was told that the taxes just go away after a certain amount of time, is that true? 
I had to tell the Investor that although the real estate market has been in a downturn the IRS expects any deferred taxes and depreciation recapture to be paid upon the sale the rental income investment property.  I explained that if the property was sold and another purchased that the depreciation and the gains could be "carried-over" to the next investment property through the continued use of a 1031 Tax Deferred Exchange.  Since this particular investor had owned the property for substantial number of years the depreciation recapture tax could very well be a sizable amount.
Each day I receive calls from investors, that have previously participated in a1031 Tax Deferred Exchange, that have been misinformed that the taxes will "just go away". 
I encourage all investors to speak with their tax consultants when they are contemplating selling investment real ... more

__________________________________________________
Are you on The Rain? Grow Your Network!