Section 1250 does not apply to assets sold or exchanged at a loss.

Name: Section 1250 does not apply to assets sold or exchanged at a loss.
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Section 1250 of the Internal Revenue Code applies to the depreciation of real property, and specifically deals with the potential recapture of that depreciation when the property is sold or exchanged. However, it only applies when there is a gain on the sale or exchange, not when there is a loss.

Section 1250 Does Not Apply to Assets Sold or Exchanged