Question

Which statement is true regarding recapture of listed property under §280F? The year following the year...

Which statement is true regarding recapture of listed property under §280F?

The year following the year of recapture, use the straight-line (SL) method in the general depreciation system (GDS), as long as the business use of the item is 50% or less.

No depreciation is claimed for the item for the year in which recapture is made.

The year of the recapture and in all subsequent years of depreciation, use the straight-line (SL) method over the alternative depreciation system (ADS) recovery period.

The year following the year of recapture, use the general depreciation system (GDS), unless business use of the item drops to 50% or less.

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Answer #1

Answer:-The statement B is true regarding recapture of listed property under 280F.

The year following the year of recapture use the straight line method in the general Depreciation system as long as the business use of the item is 50% or less.

Any use of the Asset in the taxpayers trade or business. Although simply held for the production of Income or as an investment does not qualify ,of the Asset use prominently in the business then all such use is included when calculating the Asset's depreciable portion.

Even if the Asset does not pass the prominent use test the investment use portion can still be depreciated by the straight line method.

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