A Sole Proprietor Plans to Sell an Office Building Which

question 74

True/False

A sole proprietor plans to sell an office building which was acquired and placed in service in 1995.Sec.1250 requires a portion of gain realized on the sale of a building used in a business and depreciated under MACRS to be recaptured as ordinary gain.

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Definitions:

Accept Decision

In decision-making, particularly in business, the choice to proceed with a particular action or proposal based on analysis or criteria satisfaction.

Payback Method

An investment appraisal technique that calculates the time required to recoup the cost of an investment.

Project Analysis

The process of evaluating the viability, profitability, and risks associated with a proposed project before proceeding.

Arbitrary Cutoff Point

A subjective point or threshold determined without any criteria based on clear or objective reasons, often used in decision-making processes that lack a clear rationale.