Which of the Following Is Statements Is False Regarding Depreciation

question 39

Multiple Choice

Which of the following is statements is false regarding depreciation recapture under § 1250?

• A)Depreciation recapture that existed at the death of the taxpayer carries over to the beneficiaries.
• B)Recapture is generally not required upon the gift of § 1250 property.
• C)In nontaxable transactions that do not trigger recapture under § 1250, the excess depreciation taken on the property prior to the nontaxable exchange carries over to the property received or purchased.
• D)All of the above are false.

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Definitions:

Credit Sales

Transactions where the buyer is allowed to pay for goods or services at a later date, rather than at the time of purchase.

Interest Rate

A cost, depicted as a percent of the original amount, that a lender demands from a borrower for the right to use resources.

Stated Rate

The interest rate declared on a financial instrument, such as a bond or a loan, which is fixed and does not change over the life of the instrument.

Term

In finance, it refers to the period of time until a loan matures; in a broader sense, it can describe any specific duration or the definition of a concept or agreement.