Trena LLC,a tax partnership owned equally by Trent and Nina,sells a building it had placed in service five years ago.Sec.291 will require that part of the gain (up to 20% of accumulated depreciation)be treated as ordinary gain,with the balance treated as Sec.1231 gain.

Question

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Sec. 291 applies to corporations, not partnerships. For partnerships, the gain from the sale of depreciable real property is generally subject to Sec. 1250, which may require recapture of depreciation as ordinary income, but not under Sec. 291 rules.

Trena LLC,a Tax Partnership Owned Equally by Trent and Nina,sells