All of the Following Statements Regarding Sec

question 651

Multiple Choice

All of the following statements regarding Sec. 1245 are true except

• A) Sec. 1245 property includes nonresidential real estate that qualified as recovery property under the ACRS rules unless the taxpayer elected to use the straight- line method of cost recovery.
• B) Sec. 1245 ordinary gain treatment applies to total depreciation or amortization allowed or allowable but not more than the realized gain.
• C) Sec. 1245 applies to assets sold or exchanged at a gain or at a loss.
• D) Sec. 1245 does not apply to any buildings placed in service after 1986.