When does unrecaptured §1250 gains apply?
A) When the taxpayer makes the election.
B) It applies only when non-corporate taxpayers sell depreciable real property at a gain.
C) It applies when §1245 recapture trumps §1250 recapture.
D) It applies only when real property purchased before 1986 is sold at a gain.
E) None of these.

Question

Quizplus · Accepted Answer

Unrecaptured §1250 gains apply only when non-corporate taxpayers sell depreciable real property at a gain. This is because §1250 addresses the depreciation recapture on real property, and the unrecaptured §1250 gain is the portion of the gain that is attributable to the depreciation claimed on the property. Therefore, options A, C, D, and E are incorrect.

When Does Unrecaptured §1250 Gains Apply