deduction is subject to a 25% tax rate--10% higher than the usual rate for a capital gain. This higher tax rate serves as a rough surrogate for depreciation recapture. See also Limits on Depreciation Deduction Depreciation Recapture Calculator Section 179 depreciation deduction References Samuel A. Donaldson, Federal Income Taxation of Individuals: Cases, Problems and Materials, 2nd Edition (St. Paul: Thomson/West, 2007) External links The Internal Revenue Service Website Depreciation Schedule The Internal Revenue Code Taxation in the United States Income taxes Depreciation Tax terms