Why Does §1250 Recapture Generally No Longer Apply

question 33

Multiple Choice

Why does §1250 recapture generally no longer apply?

• A)Congress repealed the code section.
• B)Real property is depreciated using the straight-line method after 1986.
• C)§1245 recapture trumps §1250 recapture.
• D)Because unrecaptured §1250 gains now apply to all taxpayers instead.
• E)None of the choices are correct.

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Definitions:

Pure Monopoly

An economic condition where one firm controls the market for a product, effectively eliminating competition.

Close Substitutes

Goods or services that can easily replace each other in consumption, offering consumers nearly identical satisfaction.

Natural Monopoly

A market situation where a single firm can supply a good or service to an entire market at a lower cost than could multiple firms.

Minimum Efficient Scale

The smallest scale of production at which long-term average costs are minimized, reflecting the point at which economies of scale are fully exploited.