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Unformatted text preview: the selling price of $80,000 and the basis of $21,600 ($72,000 1 $50,400). There is $50,400 recaptured as ordinary income to the extent of total depreciation taken, and the remaining $8,000 is Section 1231 gain. b. If the property has been sold for $15,000, there is a realized and recognized loss of $6,600 ($15,000 1 $21,600) and it is a Section 1231 loss. Recapture rules do not apply in a recognized loss situation....
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- Spring '12