Depreciation recapture is a tax on the gain from the sale of a depreciable asset. It is designed to recapture the depreciation deductions that have been taken on the asset over time. Depreciation recapture can be avoided by using certain strategies, such as selling the asset after it has been fully depreciated or using a like-kind exchange.
Depreciation recapture can be a significant tax liability, so it is important to be aware of the rules and to plan accordingly. By understanding how to avoid depreciation recapture, you can save yourself a lot of money in taxes.
