Series 22: 2.3.4.1. Depreciation Recapture

 2.3.4.1.  Depreciation Recapture

While depreciation expense is applied as a deduction in the year it is used, it really is only a tax deferral. When the depreciated property is sold, the accumulated depreciation that has been expensed during the period of years the asset has been owned will be taxed at the ordinary income rate. Known as depreciation recapture, it is measured against the profit earned from the sale, reven