A retail building used in the business of a sole proprietor is sold on March 10, 2012, for $342,000. The building was acquired in 2002 for $400,000 and straight-line depreciation of $104,000 had been taken on the building. What is the maximum unrecaptured § 1250 gain from the disposition of this building?
A)$400,000.
B)$322,000.
C)$104,000.
D)$26,000.
E)None of the above.

Question

Quizplus · Accepted Answer

The unrecaptured § 1250 gain is the amount of depreciation taken on the property, which is $104,000. This is the maximum amount that can be taxed at a higher rate upon sale.

A Retail Building Used in the Business of a Sole