When do unrecaptured §1250 gains apply?
A)When the taxpayer makes the election.
B)It applies only when noncorporate taxpayers sell depreciable real property at a gain.
C)It applies when §1245 recapture trumps §1250 recapture.
D)It applies only when real property purchased before 1986 is sold at a gain.
E)None of the choices are correct.

Question

Quizplus · Accepted Answer

Unrecaptured §1250 gains apply only when noncorporate taxpayers sell depreciable real property at a gain. This type of gain arises from the sale of real property that has been depreciated under MACRS but is not subject to the higher rates of recapture under §1245.

When Do Unrecaptured §1250 Gains Apply