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.
Related information about depreciation recapture:
- Depreciation recapture - Wikipedia, the free encyclopedia
Depreciation recapture is the USA Internal Revenue Service (IRS) procedure for collecting income tax on a gain realized by a taxpayer when the taxpayer ...
- Depreciation Recapture - What is Depreciation Recapture?
When taxpayers sell an asset that has been depreciated for tax purposes, that sale may trigger a type of capital gain called depreciation recapture.
- Figuring depreciation recapture
Feb 9, 2009 ... Depreciation recapture on the sale of real property can be offset by capital losses .
- Publication 544 (2011), Sales and Other Dispositions of Assets
If you have a gain from a section 1231 transaction, first determine whether any of the gain is ordinary income under the depreciation recapture rules (explained ...
- Depreciation Recapture Definition | Investopedia
The gain received from the sale of depreciable capital property that must be reported as income. Depreciation recapture is assessed when the tax basis of an ...
- How to Calculate Depreciation Recapture | eHow.com
How to Calculate Depreciation Recapture. Depreciation recapture is a tax provision that allows the IRS to collect taxes when an individual disposes of an asset ...
- depreciation recapture - Financial Dictionary - The Free Dictionary
A procedure the IRS uses to maximize tax revenue from depreciating assets by requiring the profit on the sale of a depreciating asset to be reported as ordinary ...
- How to Calculate Depreciation Recapture | Chron.com
For tax purposes, depreciation reflects the recognition that certain assets, particularly company equipment, tend to lose value over time. The Internal Revenue ...