Which of the Following Would Extinguish the § 1245 Recapture

question 12

Multiple Choice

Which of the following would extinguish the § 1245 recapture potential?

• A) An exchange of depreciable business equipment for like-kind business equipment with gain realized, but not recognized.
• B) A nontaxable incorporation under § 351.
• C) A nontaxable contribution to a partnership under § 721.
• D) A nontaxable reorganization.
• E) None of the above.

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Definitions:

Maintenance Skills

These are the abilities required to repair, care for, and keep machinery, buildings, or equipment in good condition.

Affect

To make a difference to or have an influence on something or someone.

Passenger Service

A range of services provided to individuals traveling or commuting, usually by means of public or private transportation.

Who's

A contraction of "who is" or "who has," used in questions and statements.