C12-Chp-02-3B-RECP-Asset Sales--Sec 1231-1245-1250-etc

C12-Chp-02-3B-RECP-Asset Sales--Sec 1231-1245-1250-etc -...

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Tab: 1. Summary Rules File: 45d9a88db76b449c943a6a0e63e99db94f431ca8.xls Page 1 of 2 RECAPTURE OF DEPRECIATION 1221 1231 (but note rule on non-recaptured sec. 1231 losses) 1245 (Exception to Sec. 1231) (treated as ordinary gain) up to amount of gain. 1250 (Note rule on non-recaptured sec. 1250 gains) (Gain up to unrecaptured depreciation had 25% tax rate.) 291 An exception to Sec. 1250. Sec. 291 only applies to corporations. Depreciable property used in a trade or business, & real property used in a trade or business are not capital assets . Capital gain treatment is given to sales, exchanges, or involuntary conversions of depreciable or real property used in a trade or business, if there is a net gain during the Applies generally to depreciable personal property Non- residential real property is also covered if accelerated depreciation is used. All depreciation taken is recaptured Generally applies to depreciable real estate . Only excess of actual depreciation over S/L is recaptured. If S/L
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C12-Chp-02-3B-RECP-Asset Sales--Sec 1231-1245-1250-etc -...

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