The annual depreciation amount using the straight-line method is calculated by dividing the total depreciable amount by the total number of years of an asset's useful life. In this case, it comes to $800 per year ($4,000 Total Depreciation / 5 Years Useful Life = $800 Annual Depreciation...
and they’re caught off guard by the higher-than-expected tax bill. To help avoid this, the following discussion provides an overview of the depreciation recapture rules
Recapture is the process of un-deducting (taking back) special depreciation allowances before you calculate the gain on business property that you are selling or otherwise disposing of. For example, if you claim a special depreciation allowance for a property that received disaster assistance, you ...
Capital gains fromreal estate investmentsmay include the recapture of depreciation. The recapture amount of depreciation is often taxed at a maximum rate of 25%, with the non-recapture amount taxed at the prevailing capital gains rate.14
Know Sure Thing (KST) is a technical indicator used to analyze the momentum and trend strength of a security or market. It combines multiple moving averages of different timeframes to generate a single line that represents the trend direction and momentum. ...
The nominal rate of return is the amount of money generated by an investment before factoring in expenses such as taxes and inflation. Tracking the nominal rate of return for a portfolio or its components helps investors to see how they're managing their