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:

Electronic Meetings

Meetings conducted using digital tools and platforms, allowing participants to interact in real-time without being physically present in the same location.

Assertive Behavior

A communication and behavior style characterized by confidently expressing one’s opinions and needs while respecting the rights of others.

Submissive Behavior

Conduct that shows readiness to conform to the authority or will of others, often characterized by a lack of resistance or assertiveness.

Passive Behavior

A tendency to submit to situations or others’ desires without adequate resistance or assertiveness, often avoiding conflict or responsibility.