Why does §1250 recapture generally no longer apply?
A)Congress repealed the code section.
B)Real property is depreciated using the straight-line method after 1986.
C)§1245 recapture trumps §1250 recapture.
D)Because unrecaptured §1250 gains now apply to all taxpayers instead.
E)None of the choices are correct.

Question

Quizplus · Accepted Answer

§1250 recapture applied to real property that was depreciated using an accelerated method before 1987. However, after the Tax Reform Act of 1986, real property has been required to be depreciated using the straight-line method, which makes §1250 recapture generally no longer applicable.

Why Does §1250 Recapture Generally No Longer Apply