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A provision in a contract that allows one party to recover (recapture) some degree of possession of an asset, such as a share of the profits derived from some property.


1. An agreement between a buyer and a seller whereby the seller is allowed to repurchase the good or other asset within a certain period of time.

2. See: Depreciation Recapture.


When you recapture assets, you regain them, usually because of the provisions of a contract or legal precedent.

When a contract is involved, you may be entitled to recapture a percentage of the revenues from something you produce in addition to being paid the cost of producing it.

For example, a hotel developer might be entitled to recapture a portion of the hotel's profits. Most of the time, recapture works in your favor, but depending on the situation, it can also mean a financial loss.

A negative form of recapture occurs when the government makes you repay tax benefits that you've profited from in the past. For example, say that your divorce settlement calls for you to pay $150,000 to your ex-spouse over three years. If you pay all the money in the first two years in order to qualify for a tax deduction, and pay nothing in the third year, the IRS may force you to recapture part of your deduction in the third year and pay taxes on it.

recapture (tax)

Same as depreciation recapture.


The inclusion of a previously deducted or excluded amount in gross income or tax liability. Recapture may be applicable to accelerated depreciation, cost recovery, amortization, and various credits.
References in periodicals archive ?
1997) recognized that such a recapture would not distinguish between a bird that migrated southwest paralleling the shoreline to Duluth and then turned to the southeast to, for example, Green Bay, WI for a distance of 580 km, or flew across Lake Superior to Green Bay for a straight line distance of 400 km.
Considering all recaptures of males and females over the three intervals of recaptures, 157 of 235 recaptures (66.
corporation may be required to recognize income to recapture an OFL account.
Assumptions relating to the standard CJS model were (1) every marked animal in the population has the same probability of recapture between trawl nights, (2) every marked animal has the same probability of surviving between trawl nights, (3) no tags are lost and tags are readable, and (4) all samples are instantaneous and each release occurs immediately after sampling
Thus, regardless of the release or study site, recapture was lower during the wet season, probably due to high frequency of rainfall during this season.
In the first year of Greenville Heritage Credit Union's recapture program, the credit union gained 33 new members and 46 new auto loans worth $905,790.
Several tagging (Parker, Rowley, and Essex river estuaries) and recapture sites (Merrimack and Ipswich river estuaries; Fig.
This repayment, or general recapture, ceases upon the death of the taxpayer (section 36(f)(4)(A)).
A useful quick check is that there is no recapture if Year 2 is greater than or equal to Year 1 minus $7,500 and Year 3 is greater than Year 2 minus $15,000.
Finance must inspire the recapture of intuition as a factor in decision-making, fostering dialogue and discovery to create practical action plans and identify the first signs of flawed choices.
Working through the items on Form 6252, you'll discover that depreciation recapture is taxable in the year of the sale up to the amount of the taxable gain.