Section 1245 depreciation recapture potential does not carryover from the deceased taxpayer to the beneficiary taxpayer.

Question

Quizplus · Accepted Answer

Section 1245 depreciation recapture potential is not eligible for carryover from the deceased taxpayer to the beneficiary taxpayer upon transfer of the property. The beneficiary taxpayer will begin with a new depreciation schedule and potential recapture will be calculated based on that new schedule.

Section 1245 Depreciation Recapture Potential Does Not Carryover from the Deceased