Recapture Legal Meaning and Definition

Here is a simplified definition of the legal term Recapture.

Recapture (noun)

Definition: Recapture is a legal financial term referring to the regaining or reclaiming of any excess or overestimated depreciation from previous years (usually of property value), when that property is ultimately sold or disposed of. This usually happens when the actual depreciation was less than what was claimed in earlier years. This process ensures fairness in the taxation system.