A Gain on the Disposition of Section 1245 Property Is

question 24

Multiple Choice

A gain on the disposition of Section 1245 property is treated as ordinary income to the extent of:

• A) Excess accelerated depreciation allowed or allowable over the depreciation figured for the same period using the straight-line method.
• B) Excess appreciated value over depreciation allowed or allowable using the straight-line method.
• C) fte difference between the amount realized over the cost of the property.
• D) Depreciation allowed or allowable (not to exceed the realized gain).

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Definitions:

Constant Rate

A stable speed or frequency at which something happens or changes over a particular period of time.

Constant-Rate

Pertaining to a process or quantity that changes over time at an unvarying speed or amount.

Progressive Tax

A tax system where the tax rate increases as the taxable amount increases, placing a heavier burden on wealthier taxpayers.

Proportional Tax

A taxation system where the tax rate remains constant regardless of the amount subject to tax.