Extract
The ins and outs of recapture.
Tax advisers can help clients avoid, shift or postpone depreciation recapture on property used in a trade or business. Part II of this article discusses special recapture rules and exceptions and planning strategies for minimizing recapture.
The depreciation recapture provisions are complicated and pervasive, significantly affecting the tax on many sales, exchanges and other dispositions. However, in many cases, recapture can be reduced, delayed or even eliminated. In the July 2005 issue, Part I of this two-part article explained how the recapture provisions operate and offered examples of recapture calculations. Part II, below, discusses special recapture rules and exceptions, and suggests planning techniques. Special Recapture Rules For installment sales, nontaxable exchanges, charitable contributions or gifts and inheritances, the Code provides special rules when applying Sec. 1245...See the full content of this document
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