Depreciation Recapture definition

Depreciation Recapture means the portion of any gain from the disposition of an asset of the Company which, for U.S. federal income tax purposes, (1) is treated as ordinary income under Section 1245 of the Code, (2) is treated as ordinary income under Section 1250 of the Code, or (3) is “unrecaptured Section 1250 gain” as such term is defined in Section 1(h) of the Code.

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Depreciation Recapture has the meaning set forth in Section 5.8(a)(iii) hereof.

Depreciation Recapture shall have the meaning set forth in Section 6.05.

Examples of Depreciation Recapture in a sentence

Depreciation Recapture with respect to depreciation deductions taken before an asset is contributed to the Partnership will be allocable to the Partner who contributed the asset to the Partnership.
Purchaser shall pay the Sellers' Representative an aggregate amount equal to 20% of such pre-tax income (excluding any Depreciation Recapture) for the period beginning January 1, 2004 through the Closing Date (the "Tax Distribution") within ten (10) days after the Final Tax Distribution Report (defined in Section 2.5(b)) is agreed or is determined by the Neutral Auditor in accordance with the procedures set forth in Section 2.5; provided, however, in no event shall such aggregate payment exceed $200,000.
It is the Partners' understanding and agreement that, to the extent possible without increasing the total gain on such disposition allocated to a Partner pursuant to Section 8.4.1. the Depreciation Recapture will be allocated among the Partners in proportion to the cost recovery (depreciation) deductions, with respect to Section 1245 property.
Subject to Section 7.02(b) (Special Allocations) and Section 7.04 (Depreciation Recapture), the Net Profits and Net Losses of the Company for each Fiscal Year shall be allocated to the Members pro rata in accordance with their respective Percentages.
The partners recognize that part of ------------- the gains recognized upon a sale or other disposition of Partnership properties may be treated for federal income tax purposes (as a result of the application of Sections 1245 or 1250 of the Internal Revenue Code) as a gain from the sale, exchange, or other disposition of an asset which is neither a capital asset nor property described in Section 1231 of the Internal Revenue Code ("Depreciation Recapture").

More Definitions of Depreciation Recapture

Depreciation Recapture is defined in Section 5.8(a)(iii).

Depreciation Recapture has the meaning given to such term in Section 6.5(a)(ii)(B).

Depreciation Recapture has the meaning set forth in Section 13.05(a)(i)(B).

Depreciation Recapture means the portion of any gain from the disposition of an asset of the Company that, for U.S. federal income tax purposes, (a) is treated as ordinary income under Code Section 1245, (b) is treated as ordinary income under Code Section 1250 or

Depreciation Recapture is defined in Section 7.05.

Depreciation Recapture shall have the meaning specified in Section ---------------------- ------- 5.7(a)(ii)(B) hereof. -------------

Depreciation Recapture. A “step into the shoes” rule applies for contributions of depreciable property. • A contributing partner who contributes property subject to depreciation recapture does not trigger the recapture unless gain is recognized. • A contributing partner’s share of depreciation remains chargeable to that partner.