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 ...

I do real estate tax consulting, and a common question is when “depreciation recapture” is recognized when real estate is sold. There are two types of recapture rules, one that applies to personal ...

Most tangible assets lose value over time. Equipment wears out, buildings require regular maintenance and upkeep, and computers become obsolete. To reflect the steady loss of value in capital assets, ...

On February 20, 2026, the U.S. Department of the Treasury and the Internal Revenue Service released Notice 2026-16, providing interim guidance on a new 100% special depreciation allowance for certain ...

On March 28, 2022, the Biden Administration proposed changes to the taxation of real property. Restrict Deferral of Gain for Like-Kind Exchanges under Section 1031 The Biden Administration has ...

The Tax Court held that a taxpayer had to recapture the majority of his prior-year section 179 deduction since he failed to show that the business use of his GMC Suburban remained above 50% in the ...