Section 1245 depreciation recapture potential does not carry over from a deceased taxpayer to the beneficiary taxpayer.

Question

Quizplus · Accepted Answer

Section 1245 depreciation recapture potential is related to the disposition of certain assets and is not transferable to beneficiaries upon the death of the taxpayer. The beneficiaries receive a step-up in basis to the fair market value of the assets on the date of the taxpayer's death.

Section 1245 Depreciation Recapture Potential Does Not Carry Over from a Deceased