1245X In Action

Selling a Property?

Reduce Depreciation Recapture When You Sell — Keep More Profit.

Our proprietary 1245X™ strategy reclassifies assets to shrink recapture liability — IRS-compliant and defensible.

Understanding Recapture

What is Depreciation Recapture?
When you take depreciation during ownership, the IRS may “recapture” part of it when you sell — taxing it at higher ordinary income rates rather than lower capital gains rates.

Why It Matters
Most property owners don’t realize how much this adds up. Without planning, you could be handing 10–30% more to the IRS in recapture taxes than necessary.

The Risk of Overpaying
If you don’t use the right strategy, you could see tens or even hundreds of thousands of dollars vanish from your sale proceeds.

What is 1245 Exchange?

CSA Partners is the industry leader in helping property owners reduce the impact of depreciation recapture taxes through our proprietary 1245 Exchange™ service.

When a property is sold, the IRS requires certain depreciated assets to be “recaptured” and taxed as ordinary income — often creating a large, unexpected tax bill. Our team specializes in mitigating this by accurately reclassifying tangible personal property and reassessing the Fair Market Value (FMV) of short-lived building components.

This IRS-compliant approach helps minimize §1245 depreciation recapture exposure, maximize after-sale profit, and provide defensible documentation to support your tax position.

Why You Need 1245X

Permanent tax savings – Reclassify assets properly to lock in deductions that never reverse.
IRS-compliant strategy – Defensible methodology backed by expertise and advanced technology.
Unlock hidden value – Capture opportunities often missed in standard depreciation or dispositions.
Cash flow acceleration – Reduce taxable income now, strengthening reinvestment potential.
Tailored for all property types – From single assets to large portfolios, 1245X delivers accurate valuations at scale.

When Does 1245 Exchange Make Sense?

Once a property is sold, the following step is to complete the gain calculation for compliant tax reporting. This is where we come in, by completing a 1245 Exchange study, and providing a Fair Market Value (FMV) for all §1245 property along with all of the necessary gains, capital gains, §1245 depreciation recapture, and §1250 unrecapture calculations.

How Does 1245X Work?

1245 Exchange™ by CSA Partners – Unlocks permanent, significant tax savings through proper asset reclassification.
Addresses an overlooked opportunity – Many avoid it due to complexity, but CSA Partners embraces it with deep expertise, advanced technology, and proven methodology.
Complex yet rewarding – Though often overlooked because of data requirements, when executed properly it delivers lasting and meaningful tax savings.
Proven experience – CSA Partners leverages robust processes and technology to provide precise, defensible, and accurate valuations for clients of all sizes.