how do you calculate depreciation recapture 
depreciation recapture is calculated by subtracting the adjusted cost basis from the sale price of the asset the adjusted cost basis is the original price paid to acquire the asset minus any allowed or allowable depreciation expense incurred if for example the adjusted cost basis is 2 000 and the asset is sold for 3 000 there is a gain of 1 000 to be taxed the rate it will be taxed depends on the taxpayer s income tax rate and whether the asset is real estate 