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:

Venous Stasis

A condition in which the flow of blood through the veins is slowed, often leading to swelling and skin changes.

Atrophic Skin

Skin that has become thin, wrinkled, and fragile due to the wasting away of the underlying tissue, often associated with aging or certain health conditions.

Brownish Discoloration

A change in skin or surface color to a brownish hue, often indicating an underlying condition or damage.

Chronic Arterial Symptoms

Symptoms that persist over time indicating poor arterial health, such as pain, cramping, and tiredness in the limbs, often due to restricted blood flow.