Recapture

Recapture may have one of the following meanings, depending the context of the term:

1. the taxing at ordinary rates of the part of the gain on a sale that represents prior depreciation allowances (e.g., Sections 1245 and 1250 property). See also depreciation recapture. 2. repayment of a previously deducted tax credit that is included in tax liability as a result of a sale that represents prior tax credits (e.g., the rehabilitation tax credit, investment tax credit, or low-income housing credit).

See Depreciation in the United States Encyclopedia of Law and Depreciation in the World Encyclopedia of Law.