The depreciation recapture provisions are designed to prevent taxpayers from converting capital gains into ordinary income.

Name: The depreciation recapture provisions are designed to prevent taxpayers from converting capital gains into ordinary income.
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Question

The depreciation recapture provisions are designed to prevent taxpayers from converting capital gains into ordinary income.
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Quizplus · Accepted Answer

Depreciation recapture provisions are designed to ensure that the portion of the gain attributable to depreciation deductions taken in prior years is taxed at ordinary income rates, rather than being taxed as capital gains.

The Depreciation Recapture Provisions Are Designed to Prevent Taxpayers from Converting