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.

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

• Depreciable Cost Basis:$800,000Before-tax IRR:6.04%7.40%Preferred Partner Residual Share 50%Ordinary Income Tax Rate:35.00%After-tax IRR:4.76%6.44% Capital Gains Tax Rate:15.00%Ratio AT/BT:0.7870.870 Depreciation Recapture 25.00% Year: Oper.

• Single taxpayers with an AGI greater than$400,000 or married couples with an AGI greater than $450,000 will be subject to a capital gains tax rate of 20%.Federal Depreciation Recapture is taxed at 25%.

• Without altering the overall amount of Net Profits or gross income allocable to any Member, Net Profits or gross income taxable as ordinary income under Sections 1245 and 1250 of the Code, or similar provisions of the Code (the "Depreciation Recapture"), shall, to the extent possible, be allocated to those Members to whom allowances for depreciation or amortization giving rise to Depreciation Recapture were allocated.

• 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.

• For more information, see Section 1250 Property under Depreciation Recapture in chapter 3 of Publication 544; ❑ Percentage depletion for iron ore and coal (including lignite).

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 is defined in Section 7.05.

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.

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