Question

Why does §1250 recapture generally no longer apply?

a. §1245 recapture trumps §1250 recapture.
b. Real property is depreciated using the straight-line method after 1986.
c. Congress repealed the code section.
d. Because unrecaptured §1250 gains now apply to all taxpayers instead.
e. None of the choices are correct.

Answer 1

§1250 recapture generally no longer applies because §1245 recapture now trumps it.

Step-by-step explanation:

The reason why §1250 recapture generally no longer applies is because §1245 recapture now trumps §1250 recapture. §1245 recapture is the taxation of gains attributable to depreciation deductions claimed on tangible personal property used in a trade or business.
It applies to both real and personal property. Since §1245 recapture takes precedence, there is no need for the application of §1250 recapture.