NAC361.368. “Recapture” defined.

“Recapture” means the recovery of a capital investment. More specifically, it is the portion of the net operating income or the cash flow that provides for the periodic repayment of invested capital. Recapture may also be achieved, wholly or in part, through the resale of the property. The words depreciation and amortization are sometimes used as synonyms for recapture. However, depreciation is also both an accounting term and a word that means a loss from original value and amortization is commonly used to signify debt retirement. Recapture does not have these multiple meanings and is more desirable for use in income appraisal.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]—(NAC A 9-30-88)