Lynne owns depreciable residential rental real estate which has accumulated depreciation (all from straight-line)of $65,000.If Lynne sold the property,she would have a $53,000 gain.The initial characterization of the gain would be:

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The gain is § 1231 gain.Since straight­line depreciation was used,there is no § 1250 recapture.Also,since Lynne is an individual,there is no "ordinary gain adjustment" under § 291.Section 1239 would not apply because there is no reason to conclude that the property would be sold to a related taxpayer.

Lynne Owns Depreciable Residential Rental Real Estate Which Has Accumulated