Which of the following events could result in § 1250 depreciation recapture?
A)Sale at a loss of a depreciable business building held more than one year.
B)Sale at a gain of a business building held more than a year on which straight-line depreciation was taken.
C)Sale at a loss of a depreciable business building held for 9 months.
D)Sale at a gain of depreciable equipment held more than a year on which straight-line depreciation was taken.
E)None of these.

Question

Quizplus · Accepted Answer

Section 1250 recapture can only occur if the sale of real property was at a gain and accelerated depreciation was taken or the property was held a year or less.For § 1231 and § 1250 to apply,the building must be held for more than a year.Depreciable equipment is subject to § 1245 depreciation recapture rather than § 1250.

Which of the Following Events Could Result in § 1250