Recaptured depreciation is the portion of the sale price that is in excess of the initial purchase price.

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Recaptured depreciation is the amount of previously claimed depreciation that is subject to taxation when an asset is sold for a price higher than its tax basis (the initial purchase price plus any improvements and minus any depreciation taken). It is not related to the excess of the sale price over the initial purchase price itself.

Recaptured Depreciation Is the Portion of the Sale Price That