if at a later time the asset is sold for the same price as I purchased it for, will I owe back the depreciated amounts I took over the years?
Yes. A common mistake I see folks make, is thinking that depreciation is a permanent deduction. It's not. When you sell or otherwise dispose of the asset you must recapture all depreciation taken. If you don't depreciate the asset, then you must recapture the depreciation you should have taken, anyway. It's a lose-lose situation. Two things about recaptured depreciation.
1) The recaptured amount is included in your AGI.
2) Recaptured depreciation is taxed anywhere from 0% to a maximum of 25%. Even if your AGI puts you in a higher tax bracket, the recaptured depreciation will not be taxed higher than 25%.
