Questions from Individual Taxation

Q: Compare and contrast §1245 depreciation recapture and §1250 depreciation recapture

Compare and contrast §1245 depreciation recapture and §1250 depreciation recapture.

Q: Why is depreciation recapture not required when assets are sold at a

Why is depreciation recapture not required when assets are sold at a loss?

Q: What are the similarities and differences between the tax benefit rule and

What are the similarities and differences between the tax benefit rule and depreciation recapture?

Q: Are both corporations and individuals subject to depreciation recapture when they sell

Are both corporations and individuals subject to depreciation recapture when they sell depreciable real property at a gain? Explain.

Q: How is unrecaptured §1250 gain for individuals similar to depreciation recapture

How is unrecaptured §1250 gain for individuals similar to depreciation recapture? How is it different?

Q: Explain why gains from depreciable property sold to a related taxpayer are

Explain why gains from depreciable property sold to a related taxpayer are treated as ordinary income under §1239.

Q: Bingaman Resources sold two depreciable §1231 assets during the year.

Bingaman Resources sold two depreciable §1231 assets during the year. One asset resulted in a large gain (the asset was sold for more than it was purchased for) and the other resulted in a small loss....

Q: Jeraldine believes that when the §1231 look-back rule applies

Jeraldine believes that when the §1231 look-back rule applies, the taxpayer deducts a §1231 loss in a previous year against §1231 gains in the current year. Explain whether Jeraldine’s description is...

Q: Explain the purpose behind the §1231 look-back rule.

Explain the purpose behind the §1231 look-back rule.

Q: Does a taxpayer apply the §1231 look-back rule in

Does a taxpayer apply the §1231 look-back rule in a year when the taxpayer recognizes a net §1231 loss? Explain.