Depreciation Recapture

Depreciation Recapture,

How Do You Define Depreciation Recapture?

  • A simple definition of Depreciation Recapture is: Depreciation profit is earned on the sale of deprecated capital assets which should be reported as meager income for tax purposes. Depreciation recovery is estimated when the sale price of an asset exceeds its tax base or adjusted cost basis. Therefore, the difference between these numbers can be retrieved by recording them in a normal number.

    • Depreciation recovery is a tax provision that allows the IRS to collect tax on the sale of profitable assets, which taxpayers use to cover past taxable income.
    • Recovery of depreciation of real assets is taxed at the rate of ordinary taxpayers and not at the appropriate tax rate for capital gains.
    • The decline in real estate is a 25% reduction for 2019.
    • To calculate the amount of the error, it is necessary to compare the asset's adjusted cost basis with the asset's selling price.

Literal Meanings of Depreciation Recapture


Meanings of Depreciation:
  1. Asset value declines over time, mainly due to wear and tear.

Sentences of Depreciation
  1. Expected assets are expected to depreciate

Synonyms of Depreciation

devaluation, cheapening, tumble, markdown, lowering in value, devaluing, slump, downturn, decrease in value, plunge, drop, reduction in value, reduction, decline, downswing


Meanings of Recapture:
  1. Grip (fugitive person or animal)

  2. The process of giving something back or giving something back.

Sentences of Recapture
  1. Armed police arrested a prisoner who had been on the run for five days.

  2. Recapture the port of Bahia

Synonyms of Recapture

recouping, redemption, retrieval, recapture, getting back, regaining, retaking, repossession, reclamation