What Is Depreciation Recapture?
Depreciation recapture is a tax owed when a depreciated rental property is sold — the IRS taxes the portion of the gain equal to depreciation previously deducted at a separate rate, since that depreciation reduced taxable income while the property was held.
Most useful for: Homeowner · Real Estate Investor
Related Terms
More Investing Terms
Share:
Was this explanation helpful?
This definition is provided for general educational purposes and is not financial, legal, tax, or real estate advice. Verify important decisions with appropriately qualified professionals.
Understand a property's costs and risks before you make an offer
Use the free calculator for your own numbers, or analyze a specific home before you commit.
Or analyze a specific property: Essential Property Analysis, $19 · Property Decision Analysis, $49 · Professional Property Analysis, $99. You choose the depth before you pay.