A Building Used in a Business for More Than a Year

question 26

Multiple Choice

A building used in a business for more than a year is sold.Sec.1250 will not cause depreciation recapture if

• A)the building is fully depreciated.
• B)the building was placed in service after 1986.
• C)straight-line depreciation was used.
• D)all of the above.

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Definitions:

Physical Changes

Alterations in the physical state or appearance of a substance or object, without changing its chemical composition.

Deterioration

The process of becoming progressively worse or the decline in quality or condition.

Mental Abilities

The cognitive capacities that include reasoning, problem-solving, planning, abstract thinking, comprehension, and learning.

Old Age

The latter part of life, typically defined as the period of life after retirement, or the ages around or beyond 65 years, characterized by changes in physical, social, and cognitive abilities.