A building used in a business for more than a year is sold.Sec.1250 will not cause depreciation recapture if
A)the building is fully depreciated.
B)the building was placed in service after 1986.
C)straight-line depreciation was used.
D)all of the above.

Question

Quizplus · Accepted Answer

- If the building is fully depreciated, there is no more depreciation to recapture.
- If the building was placed in service after 1986, it is subject to the Modified Accelerated Cost Recovery System (MACRS) which does not trigger depreciation recapture under Sec.1250.
- Straight-line depreciation is the default depreciation method under MACRS, and it also does not trigger depreciation recapture under Sec.1250.

A Building Used in a Business for More Than a Year