For the individual taxpayer, all gain recognized is 15-percent gain if 15-year, 18-year, or 19-year real property under ACRS is depreciated on a straight-line basis.

Question

Quizplus · Accepted Answer

Under ACRS, any 15-year, 18-year, or 19-year real property for which an election to depreciate on a straight- line basis is Section 1250 property and there is then no recapture of gain as ordinary income
 However, any remaining unrecaptured depreciation is recognized and taxed at a maximum rate of 25 percent.

For the Individual Taxpayer, All Gain Recognized Is 15-Percent Gain