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.

Here’s the situation: You buy a rental property ten years ago, claim depreciation year after year like your accountant says, and then sell it for a tidy profit. Closing day hits, and instead of ...

Peter Gratton, Ph.D., is a New Orleans-based editor and professor with over 20 years of experience in investing, economics, and public policy. Peter began covering markets at Multex (Reuters) and has ...

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 ...