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Sec1245 Ordinary Income Recapture Can Apply to Buildings Placed in Service

question 82

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Sec.1245 ordinary income recapture can apply to buildings placed in service prior to 1987.


Definitions:

Capital Lease

A lease agreement that grants a lessee the benefits and risks of ownership of the asset, typically recognized on the balance sheet.

Balance Sheet

A “snapshot” of an organization’s financial position at a given moment.

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