Common use of Recapture date Clause in Contracts

Recapture date. In the case of a trans- action described in paragraph (a)(1) or (b)(1) of this section, the recapture date is the day before the effective date of the S corporation election. In the case of a transaction described in paragraph (a)(2) or (b)(2) of this section, the re- capture date is the date of the transfer of the partnership interest to the S corporation.