Section 1245 Depreciation Recapture Potential Does Not Carryover from the Deceased

question 55

True/False

Section 1245 depreciation recapture potential does not carryover from the deceased taxpayer to the beneficiary taxpayer.

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Definitions:

Compound Interest

Interest calculated on the initial principal, which also includes all of the accumulated interest of previous periods of a deposit or loan.

Cash Inflow

Money that is moving into a business from various sources over a period, such as sales, financing, or investment income.

Present Value

The current value of a future sum of money or stream of cash flows, given a specified rate of return.

Compound Interest

Interest that's computed on the initial principal sum including the total of all previously earned or accrued interest on a deposit or loan.