recapture of depreciation

1. The extent to which the price received from selling a depreciated asset represents recovery of depreciation taken in prior years. For example, an asset purchased for $10,000, depreciated to a book value of $6,000, and sold for $9,000 would result in a recapture of $3,000. Also called depreciation recapture.
2. Loss of government benefits because a company failed to maintain promised investment or employment levels. For example, many communities grant extensive tax abatements and other economic benefits to entice businesses to locate nearby. In turn, the businesses promise a minimum amount of investment and employment.
3. Repayment of benefits gained from government subsidized low-interest financing when a home is sold for a gain within a specified period from the date of purchase.