Depreciation recapture is a tax on the acquire from the sale of a depreciable asset. It’s designed to recapture the depreciation deductions which were taken on the asset over time. Depreciation recapture could be averted by utilizing sure methods, corresponding to promoting the asset after it has been absolutely depreciated or utilizing a like-kind trade.
Depreciation recapture is usually a important tax legal responsibility, so you will need to pay attention to the principles and to plan accordingly. By understanding the best way to keep away from depreciation recapture, it can save you your self some huge cash in taxes.
