Question

Section 1245 recapture applies to which of the following?

Section 1231 real property sold at a gain with accumulated depreciation in excess of straight line.

Section 1231 personal property sold at a gain with accumulated depreciation.

Section 1231 real property sold at a gain with accumulated depreciation equal to straight-line depreciation.

Section 1231 personal property sold at a loss.

Section 1250 recapture applies to which of the following?

Section 1231 real property sold at a gain with accumulated depreciation in excess of straight line.

Section 1231 personal property sold at a gain with accumulated depreciation.

Section 1231 real property sold at a gain with accumulated depreciation equal to straight-line depreciation.

Section 1231 personal property sold at a loss.

Answer 1

1. answer is option B

Section 1231 personal property sold at a gain with accumulated depreciation.

For Section 1245 recapture following three conditions must be satisfied:

- Asset held more than one year

- Gain on sale of an asset

- Asset should be depreciated

2. answer is option A

Section 1231 real property sold at a gain with accumulated depreciation in excess of straight line.

Section 1250 recapture deals with excess of accelerated depreciation over straight-line