Depreciation recapture
Varies
Can You Write Off Depreciation Recapture?
Short answer: When you sell a depreciated asset, the depreciation taken is taxed back as ordinary income (25% max for real estate).
Selling a vehicle you expensed can create a large tax bill.
Records to keep: Keep receipts or invoices, proof of payment, and a note of the business purpose for each expense.
BW-B23-00680
medium risk
Depreciation recapture
Varies
General Business
Equipment & Gear
Tax Write-Off Rules
When you sell a depreciated asset, the depreciation taken is taxed back as ordinary income (25% max for real estate).
BizWriteOffs provides educational information only and is not tax, legal, or accounting advice. Deductibility depends on your specific facts and records. Consult a qualified tax professional.
Business justification
When you sell a depreciated asset, the depreciation taken is taxed back as ordinary income (25% max for real estate). Selling a vehicle you expensed can create a large tax bill.
Category
- Tax Write-Off Rules
tax rule
search demand 2026 b23
business taxes
depreciation credits