When Does Unrecaptured §1250 Gains Apply

question 107

Multiple Choice

When does unrecaptured §1250 gains apply?

• A) When the taxpayer makes the election.
• B) It applies only when non-corporate taxpayers sell depreciable real property at a gain.
• C) It applies when §1245 recapture trumps §1250 recapture.
• D) It applies only when real property purchased before 1986 is sold at a gain.
• E) None of these.

---

Definitions:

Pro Forma Statements

Financial statements prepared to show the effects of future events or transactions, typically used in projections.

Bottom-Up Approach

An investment analysis approach focusing on individual stocks or companies, as opposed to the broader market conditions or economic trends.

Operating Cash Flow

The total amount of cash generated by a company's normal business operations.

Noncash Deductions

Expenses that reduce a company's taxable income but do not involve an actual cash outflow, such as depreciation and amortization.