Owner Education

Depreciation Recapture

A tax concept that can apply when prior depreciation is recognized at sale. Learn how depreciation recapture affects property performance, owner.

Direct answer

What Depreciation Recapture means

A tax concept that can apply when prior depreciation is recognized at sale.

Depreciation recapture can occur when depreciation taken during ownership affects taxable gain at sale. It is a planning issue owners should review with tax professionals before selling or exchanging property.

How this connects

From the book to the operating plan

Depreciation Recapture connects to Chapter 6: Owner Mindset in Property Management Excellence. The operating takeaway for owners is: Owners make better decisions when the operating picture is clear.

Book section

Chapter 6: Owner Mindset

Operating principle

Owners make better decisions when the operating picture is clear.

Owner question

What risk does Depreciation Recapture create if no one owns the review process?

Owner path

Commercial and Multifamily

Also known as

  • recaptured depreciation
  • tax recapture

Property Management Excellence

Turn definitions into a clearer operating plan.

Coastline Equity helps commercial and multifamily owners connect leasing, maintenance, reporting, and asset strategy into one accountable management rhythm.

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