Gain is recaptured as ordinary income to the extent of total depreciation taken when residential real property depreciated under ACRS is sold.

Question

Quizplus · Accepted Answer

Under ACRS, Section 1250 recapture potential as ordinary income is the extent to which depreciation taken exceeds the depreciation under the straight-line method over a 15-year, 18-year, or 19-year period
 However, any remaining unrecognized depreciation is recognized and taxed at the rate of 25 percent.

Gain Is Recaptured as Ordinary Income to the Extent of Total