recapture

re·cap·ture   (rē-kāp'chər)    n.   The act of retaking or recovering. The condition of having been retaken or recovered. Law The act or an instance of retaking booty or goods. Something recaptured. The lawful taking by a government of a fixed amount of the profits of a public-service corporation in excess of a stipulated rate of return. tr.v.   re·cap·tured, re·cap·tur·ing, re·cap·tures To capture again. To recall: an attempt to recapture the past. To acquire by the government procedure of recapture.

recapture 

Recapture

1. A condition set by the seller of an asset that gives him/her the right to purchase back some or all of the assets within a certain period of time.

2. A situation where an individual must add back a deduction from a previous year to their income.

Investopedia Commentary

1. A stipulation that allows you to buy back your shares at some future point in time, if you wish.

2. For example, when a business sells an asset and must recapture (add back) some of the depreciation.

See also: Asset, Depreciation, Sell

Main Entry: re·cap·ture
Pronunciation: "rE-'kap-ch&r
Function: transitive verb
Inflected Forms: -tured; -tur·ing
1 : to capture again
2 : to recover or take (as an excess or gain) by law or agreement; especially : to recover (a tax benefit) by higher or additional taxation of income or property that ceases to qualify for a credit or deduction or by taxing gain realized from the sale or exchange of such property recaptured the depreciation by taxing the gain resulting from the difference between the sale price and the basis after depreciation>