senlinlang

Ignore the term recaptured depreciation.
What they ask you to do:
A=Net Sales Price
B=Purchase Price - Accumulated Depreciation

A-B=C

C-Accumulated Depreciation=Capital Gains
Accumulated Depreciation=Recaptured Depreciation.

do this as follows - and you will get the same answer: (Short Cut).

Net Sales Price - Original Purchase Price = Capital Gains
Accumulated Depreciation=Recaptured Depreciation.

Differentiated because you are taking the depreciation for tax purposes - but the property actually does not depreciate. So you need to "recapture" it, and recalculate tax on it when you sell the property...

CP