[wawr47aa87]

Do corporations get to use the special 25% tax rate on LTCG sales of 1231 assets, or is that just for individuals?

BEC 76 (2/15)
REG 81 (4/15)
AUD 78 (5/15)
FAR 81 (7/15)

Roger + Ninja MCQ

[taxgeek83]

A quick Google search tells me C corporations do not qualify; however, I do not have a solid reference for you (i.e. Code or Regs).

[spartancpa15]

Corporations do not have any special tax rates on long-term capital gains. They are taxed at the regular corporate tax rates.

Also, for individuals, a 25% gain refers to unrecaptured section 1250 gain (basically applies to sales of real property).

In the case of an individual's section 1231 gain that survives section 1245 depreciation recapture and section 1231 lookback losses, the gain becomes capital and is taxed at the 0%/15%/20% long-term capital gains rates.

FAR - Aug '14 - 90
AUD - Jan '15 - 91
REG - May '15 - 93
BEC - July '15 - 85

Used CPAexcel exclusively
Master of Science in Accounting (focus in Tax) May '15

[Author]

Replies