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:

Orangetheory Fitness

A franchise-based fitness company offering hour-long, high-intensity workout classes that combine cardiovascular and strength training.

Limited-Service

Refers to businesses or offerings characterized by a reduced or more focused range of services, typically at a lower cost.

Exclusive-Service

A service provided under conditions where the provider has agreed to supply services exclusively to a specific customer or market segment.

Minimal-Service

Retail or service environments that offer limited assistance to customers, focusing on self-service or automated service options to reduce costs.