depreciation recapture

Definition

When real property is sold at a gain and accelerated depreciation has been claimed, the owner may be required to pay a tax at ordinary (non-accelerated) rates to the extent of the excess accelerated depreciation.

Use this term in a sentence

You need to make sure that you are sure about what you are doing with when you want to try a depreciation recapture.

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There was some depreciation recapture and that was something that we were wondering about and were glad that it had happened.

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Because they had received a gain on the sale, they had to account for depreciation recapture and pay a tax on the gain they received.

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