Section 1250 of the U.S. tax code applies to gains from the sale of depreciated business real estate. If a property was depreciated beyond the straight-line method, the extra depreciation is taxed at ...

For tax purposes, depreciation reflects the recognition that certain assets, particularly company equipment, tend to lose value over time. The Internal Revenue Service generally allows you to ...

We got the following question from one of our readers: “When does depreciation recapture on equipment kick in? For example a 20 year old tractor fully depreciated sells for $30,000 cash. It cost ...

Depreciation recapture is the process by which the IRS reclaims tax benefits previously obtained through depreciation when an investor sells a depreciable asset for more than its depreciated value.

What is depreciation? Learn how it works, the main methods and how it impacts your business taxes and accounting.

Most tangible assets lose value over time. Equipment wears out, buildings require regular maintenance and upkeep, and computers become obsolete. To reflect the steady loss of value in capital assets, ...