Icf/Iid: Recapture Of Depreciation

Depreciable assets reimbursed based on cost, and sold for an amount over net book value, are recaptured from the facility’s buyer in an amount equal to reimbursed depreciation, or gain on the sale, whichever is less. (7-1-26) 01. Amount Recaptured. Depreciation is recaptured in full when sale of a depreciated facility occurs within the first five (5) years of ownership. For every year an asset is held beyond the first five (5) years, total depreciation recaptured is reduced by ten percent (10%) per year. (7-1-26) 02. Time Frame. The Department recaptures depreciation from the facility buyer over no more than five (5) years from the sale date, with no less than one fifth (1/5) of the total amount recaptured each year after. (7-1-26)