Gain Recognized on the Sale of a Section 1245 Asset

question 59

True/False

Gain recognized on the sale of a Section 1245 asset is classified as ordinary income up to the amount of depreciation claimed.

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Definitions:

Negligence Per Se

A doctrine in tort law in which an act is considered negligent because it violates a statute or regulation.

Joy Riding

The act of taking and driving another person's vehicle without the owner's consent, typically for leisure or thrill, without the intention to permanently deprive the owner of the vehicle.

Underage

Describes individuals who are below the legal age for certain rights or responsibilities, such as voting or purchasing alcohol.

Adult Activity

Activities considered suitable only for adults, often due to their mature or explicit nature.