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For the individual taxpayer, all gain recognized is 15-percent gain if 15- year, 18-year, or 19-year real 39. property under ACRS is depreciated on a straight- line basis. For individuals, the deduction for capital losses is limited to the capital gains included in gross income plus 40. $3,000; any unused capital losses are carried forward five years. When the basis of the taxpayer’s property is determined in whole or in part by reference to another asset, 41. the holding period of the taxpayer’s property includes the holding period of the other asset. The disposition of inherited property results in long- or short-term gain or loss, depending on the actual 42. time the taxpayer holds the property or the decedent had held the property. If a business elected or was required to use straight-line depreciation under the alternative depreciation 43. system for personal property, only a percentage of straight-line depreciation taken is subject to recapture as ordinary income.