When does unrecaptured §1250 gains apply?
A)When the taxpayer makes the election.
B)It applies only when non-corporate 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 thesE.Unrecaptured §1250 gain only applies to the lesser of realized gain or accumulated depreciation on sales of real property by non-corporate taxpayers.

Question

Quizplus · Accepted Answer

Unrecaptured §1250 gain only applies when non-corporate taxpayers sell depreciable real property at a gain. It is calculated by taking the lesser of the realized gain or accumulated depreciation and is taxed at a maximum rate of 25%. The election or purchase date does not affect the application of this rule, and it does not override §1245 recapture.

When Does Unrecaptured §1250 Gains Apply