Question

T/F

28. All gain recognized on the sale or exchange of property between related parties is ordinary income if the property is subject to depreciation in the hands of the purchaser.

29. There is no way to avoid the recapture provisions.

30. Sec. 1245 affects both the character and amount of the gain.

Answer 1

Solution:-

28. All gain recognized on the sale or exchange of property between related parties is ordinary income if the property is subject to depreciation in the hands of the purchaser:-

True

Explanation:-

As per Interna Revene Code all gain recognized on the sale or exchange of property between related parties is ordinary income if the property is subject to depreciation in the hands of the transferee.

29. There is no way to avoid the recapture provisions:-

False

Explanation:-

If you sell rental or investment property, you can avoid capital gains and depreciation recapture taxes by rolling the proceeds of your sale into a similar type of investment within 180 days.

30. Sec. 1245 affects both the character and amount of the gain:-

False

Explanation:-

Section 1245 affects character of the gain, not the amount of the gain.

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