What Is The Depreciation Recapture Tax Rate For 2025. Depreciation recapture is not just a concept for tax professionals to worry about. If you sell or otherwise dispose of depreciated business property for a gain, depreciation recapture permits the irs to take back or “recapture” some of the tax benefits you received over the years through depreciation deductions.

The way depreciation is claimed vs. Almost all assets depreciate over time, lowering the value from the time it was purchased and costing the buyer equal value.