Test in 2 days… Need help with 1250 gains for Individuals

  • Creator
    Topic
  • August 29, 2015 at 10:49 pm #196558
    Anonymous
    Inactive

    My understand of 1250…

    You sell Section 1250 real property used in a business for a gain. The amount that is taxed at the “Max 25% Rate” is the

    Lesser of:

    1.) Recognized Gain on the sale

    2.) Accumulated Depreciation

    Any excess gain is taxed at the preferential rates of 0%, 15,%, 20%.

    Does that mean that for Section 1250 gains Individuals never recognized any part of the gain as Ordinary Income?

    Thanks!

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