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Finance Dictionary and Glossary of Investment Terms
Recapture
Definition 1.
A provision in a contract that allows one party to recover (recapture) some degree of possession of an asset, such as a share of the profits derived from some property.
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Definition 2.
A contract stipulation that permits the seller of an asset to at least partially retrieve asset ownership. For example, the seller of a block of shares could arrange to buy back some shares if he/she wants, or the seller of real estate could gain some of the income generated by the property. The recapture agreement is usually valid only within a specific time period.
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Definition 3.
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.
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