Depreciation Recapture Does Not Apply to a Transfer Coming Under

question 55

True/False

Depreciation recapture does not apply to a transfer coming under Sec.351 unless the transferor recognizes gain on depreciable property that is transferred.

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Definitions:

Present Value

The present worth of a future amount of money, or sequence of cash flows, taking into account a certain return rate, employed in discounting to evaluate investment prospects.

Interest Factor

A multiplier used to calculate the total interest that will accrue on an investment or loan based on the interest rate and time period.

Calculated

The result of mathematically determining a number or value through a prescribed process or formula.

Higher Risk

A condition or scenario involving a greater probability of loss or less certainty of returns, typically demanding a higher risk premium.