If § 1245 property is sold on the installment basis, any depreciation recapture must be reported in the year of sale, even if the amount of money collected in that year is less than the recaptured amount.

Question

Quizplus · Accepted Answer

This is true. According to IRS rules, when § 1245 property is sold on an installment basis, any depreciation recapture must be reported in the year of sale, regardless of the amount of money collected in that year.

If § 1245 Property Is Sold on the Installment Basis