how can i avoid depreciation recapture 
depreciation recapture can be quite costly when selling something like real estate other than selling the property for less which isn t a favorable option ways around it could include using the irs section 121 exclusion or passing the property to your heirs if you find yourself in this position speak to an expert before acting the bottom linedepreciation recapture offers the irs a way to collect taxes on the profitable sale of an asset that a taxpayer used to offset taxable income while owning the asset the taxpayer is permitted each year to expense its declining value to reduce the amount of income tax owed however if that asset is later sold the irs may be able to claw some of that money back depreciation recapture is calculated by subtracting the adjusted cost basis which is the price paid for the asset minus any allowed or allowable depreciation expense incurred from the sale price it only applies when an asset is sold for more than its adjusted cost basis and is taxed differently depending on the type of asset depreciation recapture on non real estate property is taxed at the taxpayer s ordinary income tax rate depreciation recapture on gains specific to real estate property on the other hand is capped at a maximum of 25 