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26 U. S. Code § 1250 - Gain from dispositions of certain depreciable . . . In the case of a building (or a portion of a building devoted to dwelling units), if, on the average, 85 percent or more of the dwelling units contained in such building (or portion thereof) are units described in clause (ii), such building (or portion thereof) shall be treated as property described in clause (ii)
Unrecaptured Section 1250 Gain: What It Is, How to Calculate This article explains what unrecaptured Section 1250 gain is, how it works, and ways to calculate and offset it, with practical examples and strategies for minimizing your tax liability
1250 Recapture Calculation Guide | George Dimov, CPA What is 1250 Recapture? Section 1250 recapture is the IRS process of taxing the portion of your gain attributed to depreciation on real property Depreciation allows property owners to reduce their taxable income over time
What Is Section 1250 Depreciation Recapture? - LegalClarity The Unrecaptured Section 1250 Gain is the lesser of the $250,000 recognized gain or the $100,000 total depreciation taken In this example, $100,000 of the gain is Unrecaptured Section 1250 Gain, taxed at the maximum 25% rate The remaining $150,000 of gain is taxed at the taxpayer’s applicable standard long-term capital gains rate
What is the difference between 1245, 1231, and 1250 properties? Section 1250 generally applies to real property (such as commercial buildings and rental houses) and real property structural components (such as roofs and flooring) that are depreciated over longer periods of time than section 1245 property
1250 - U. S. Code Title 26. Internal Revenue Code - FindLaw (c)Section 1250 property --For purposes of this section, the term “ section 1250 property” means any real property (other than section 1245 property, as defined in section 1245 (a) (3)) which is or has been property of a character subject to the allowance for depreciation provided in section 167