Section 1250 Property Depreciation Recapture
Capital gains and losses from both categories are added to determine the.
Section 1250 property depreciation recapture. A section 1231 gain is a capital gain realized from the sale of either a section 1245 property or a section 1250 property. Internal revenue code establishes that the irs will tax a gain from the sale of depreciated real property as ordinary income if the accumulated depreciation exceeds the. Part or all of the gain on the sale or other disposition of section 1250 property may be treated as ordinary income.
For section 1250 property held more than one year the amount of gain generally treated as ordinary income is the lower of the following. Section 1250 relates only to real property such as buildings and land.