Question: Why is Section 1250 recapture inapplicable to sales of realty
Why is Section 1250 recapture inapplicable to sales of realty subject to MACRS depreciation?
Answer to relevant QuestionsUnder what circumstances could a taxpayer have an amount realized on the disposition of an asset without any inflow of cash or property? Two years ago, Firm OP bought a tract of land for $600,000, paying $50,000 down and borrowing the balance of the purchase price from a commercial lender. The land is the collateral for OP’s debt. To date, OP has not repaid ...Firm J, an accrual basis taxpayer, recorded a $40,000 account receivable on the sale of an asset on credit. Its basis in the asset was $33,000. Two months after the asset sale, Firm J sold the receivable to a local bank for ...In its first year, Firm KZ recognized $427,300 ordinary business income and a $13,590 loss on the sale of an investment asset. In its second year, Firm KZ recognized $500,800 ordinary business income and a $19,300 Section ...Firm P, a non-corporate taxpayer, purchased residential realty in 1985 for $1 million. This year it sold the realty for $450,000. Through date of sale, Firm P deducted $814,000 accelerated depreciation on the realty. ...
Post your question