Depreciation recapture is the process by which the IRS reclaims tax benefits previously obtained through depreciation when an investor sells a depreciable asset for more than its depreciated value.

The installment method of reporting deferral of gain does not apply to depreciation recapture. Therefore, the portion of gain attributable to depreciation recapture must be reported in the year of ...

Depreciation is often seen as one of the most attractive tools in tax planning. By allowing the gradual deduction of the cost of business assets, it creates an immediate sense of tax savings. In the ...