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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13323
Experience:  15years with H & R Block. Divisional leader, Instructor
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I HAVE A CORPORATION THAT IS SELLING BOTH SECTIONS 1245 AND

Customer Question

I HAVE A CORPORATION THAT IS SELLING BOTH SECTIONS 1245 AND 1250 PROPERTY. I AM CONFUSED ABOUT THE RECAPTURE ON THE 1250 PROPERTY THAT WAS DEPRECIATED ON THE STRAIGHT LINE BASIS
JA: The Accountant will know how to help. Please tell me more so we can help you best.
Customer: Is the straight line depreciation on 1250 property subject to recapture and if so at what rate?
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Customer: How does a corporation that sells section 1250 property that was depreciated on the straight line basis calculate the tax?
JA: Is there anything else the Accountant should be aware of?
Customer: No
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Submitted: 8 months ago.
Category: Tax
Expert:  PDtax replied 8 months ago.
Hi from just answer. I'm PDtax. I'll assist.
Expert:  PDtax replied 8 months ago.

1250 depreciation in excess of straight line is ordinary income.

If your 1250 assets were straight line depreciated, there should not be recapture. Please advise.

Expert:  PDtax replied 8 months ago.

I didn't hear back, so I assume you no longer need assistance. I'll Opt out.

Expert:  Robin D. replied 8 months ago.

Hello

Not sure why the other expert opted out but they were correct.

The recapture of the depreciation is going to be at the same rate of tax as your ordinary income. It does not receive capital gain treatment for tax.

You can respond below.

I’ll be happy to respond. Thank you!

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