Prop Transactions - Section 1231 Assets

Question 1

What depreciation is subject to recapture under Section 1250?

Answer 1

Excess depreciation (depreciation claimed over straight-line).

Question 2

What depreciation is subject to recapture under Section 1245?

Answer 2

All depreciation claimed.

Question 3

Define “Section 1245 property.”

Answer 3

All property other than land and buildings.

Question 4

What is the period of time that lookback rules apply to Section 1231 gains?

Answer 4

5 years.

Question 5

What is the maximum tax rate for gain attributable to depreciation claimed on real estate for an individual?

Answer 5

25% for straight line depreciation recapture.