Asset Book Value & Recapture Basis Tracker

Adjusted basis is the asset's original cost minus accumulated depreciation (plus any capital improvements). It's the figure you subtract from the sale price to compute gain or loss on disposal, and it determines how much depreciation is recaptured. Knowing it before you sell lets you anticipate the tax consequences rather than being surprised at filing time.

For equipment and other Section 1245 property, recapture (gain up to the total depreciation claimed) is taxed as ordinary income. For real property (Section 1250), unrecaptured depreciation is taxed at a maximum 25% rate. Gain above the original cost is treated as capital gain. So depreciation defers tax during ownership but is partly clawed back when you sell at a gain — which this tracker helps you anticipate.

You generally have a loss equal to adjusted basis minus sale price. For business assets, that's typically an ordinary (Section 1231) loss that can offset other income — a genuine deduction. There's no recapture when you sell below basis because you didn't recover more than the asset's remaining value. Keeping an accurate basis record (as here) ensures you claim the correct loss.

Yes — the adjusted-basis principle is method-independent: adjusted basis = cost − accumulated depreciation, however that depreciation was computed. This tracker shows a straight-line basis curve; if you used MACRS, Section 179 or bonus, your accumulated depreciation (and thus the recapture exposure) will be higher in early years. Use the matching depreciation calculator for the schedule, and read the adjusted basis from its accumulated-depreciation column at the year of sale.