Definition
Tax owed at sale on depreciation previously taken, at rates up to 25% for real property.
Example
Unrecaptured Section 1250 gain of $84,000 was taxed at 25% when the rental sold.
Related terms
- Adjusted Basis
- Assessed Value
- Cost Segregation
- Depreciation
- Exchange Accommodation Titleholder
- Homestead Exemption
Frequently asked questions
What does Depreciation Recapture mean in real estate?
Tax owed at sale on depreciation previously taken, at rates up to 25% for real property.
How is Depreciation Recapture used in practice?
Unrecaptured Section 1250 gain of $84,000 was taxed at 25% when the rental sold.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.