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 ...

In practice, depreciation does not eliminate tax cost over time. It merely redistributes it. When an asset is eventually disposed of, depreciation recapture comes into play, a mec ...

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 ...

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.

The Inflation Reduction Act of 2022 (“IRA”) has brought unprecedented opportunities in the renewable energy sector with tax incentives such as the direct transferability of investment tax credits ...