What does recapture in real estate allow an owner to do?

Recapture in real estate primarily refers to a specific tax provision that allows property owners to recapture depreciation deductions when the property is sold. By deducting a percentage of the cost of the property from taxable income, owners can effectively reduce their tax liability during the time they own the property and benefit from lower taxes on rental income.

When the property is sold, the IRS requires that any depreciation taken be "recaptured," meaning that the previously deducted amounts may be taxed again. This provision is intended to ensure that owners do not benefit from both depreciation deductions and the full gain on the sale of the asset. Therefore, the ability to deduct a percentage of the property's cost from taxable income during ownership directly ties to the concept of recapture, making it the correct choice.

The other options pertain to different aspects of real estate investment or ownership, such as selling for profit, increasing market value, or deducting maintenance costs, which do not directly relate to the concept of recapture.