What is depreciation recapture?
Gain at sale attributable to prior depreciation deductions, taxed ahead of ordinary capital-gain treatment. For real property it is unrecaptured Section 1250 gain, taxed at a maximum 25% federal rate.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.