Lynne Owns Depreciable Residential Rental Real Estate Which Has Accumulated

question 55

Multiple Choice

Lynne owns depreciable residential rental real estate which has accumulated depreciation (all from straight-line) of $65,000. If Lynne sold the property, she would have a $53,000 gain. The initial characterization of the gain would be:

• A) Section 1245 gain.
• B) Section 1231 gain.
• C) Section 1250 gain.
• D) Section 1239 gain.
• E) None of the above.

---

Definitions:

Restaurants

Restaurants are establishments where meals are prepared and served to customers in exchange for money.

Schools

Institutions dedicated to education and learning, ranging from primary to higher education, where academic, social, and physical skills are developed.

Professional Organizations

Groups or associations formed to support the interests and professional development of members in specific occupations or fields.

Paralegal

A legal assistant who performs tasks such as conducting legal research and preparing documents, while working under the supervision of a lawyer.