Why Does §1250 Recapture Generally No Longer Apply

question 27

Multiple Choice

Why does §1250 recapture generally no longer apply?

• A) Congress repealed the code section.
• B) The Tax Reform Act of 1986 changed the depreciation of real property to the straight-line method.
• C) §1245 recapture trumps §1250 recapture.
• D) Because unrecaptured §1250 gains now apply to all taxpayers instead.
• E) None of these.

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Definitions:

Surplus

An excess of income or assets over expenditure in a given period, often referring to a government's budget.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price over a specific period.

Quantity Demanded

The amount of a good or service consumers are willing and able to buy at a specific price level, ceteris paribus.

Equilibrium Price

The price level where the supply of goods meets the demand for those goods.