A retail building used in the trucking business of a sole proprietor is sold on February 10, 2008 for $1,000,000. Accelerated depreciation of $450,000 had been taken on the building and it had been acquired in 1985 for $600,000. Straight-line depreciation for the same holding period would have been $300,000. What is the maximum unrecaptured § 1250 gain from this disposition after considering depreciation recapture?$0.$300,000.$450,000.$550,000.None of the above.
According to IRS 1250, depreciation allowed / taken in excess of what is eligible under SLM fora pre 87 property is taxed as ordinary income and any gain un captured under SLM is charged at25%….