what is recaptured depreciation 
recapture is a process through which the irs gets back some of the money it previously allowed the taxpayer to deduct through depreciation for example when a taxpayer takes depreciation deductions for an asset that reduces their cost basis in the asset if they later sell the asset for more than its cost basis they can owe tax on that profit in the case of listed property if the taxpayer claimed a section 179 deduction for a particular asset they may be subject to recapture if their business use of it falls to 50 or less at any time during that asset s recovery period 16 the recovery period is the number of years over which an asset would normally be depreciated under irs rules an automobile for example has a recovery period of five years under the general depreciation system 17the bottom lineknowing what the irs considers listed property managing that property s business vs personal use and keeping careful records can help a business maximize its tax deductions and get the greatest financial benefit from its assets 