Unrecaptured Section 1250 Gain

外汇网2021-06-20 21:15:04 82

A type of depciation-recapture income that is realized on the sale of depciable real estate. Unrecaptured Section 1250 income is taxed at a 25% maximum capital-gains rate (or less in some cases). Unrecaptured Section 1250 gains are only realized when there is a net Section 1231 gain that is not subject to recapture as ordinary income.

A Section 1250 gain is recaptured upon the sale of depciated real estate, just as with any other asset; the only difference is the rate at which it is taxed. Assets that do not qualify under Section 1250 are taxed at a different rate.

Unrecaptured Section 1250 gains and losses are not reported on Schedule D, but on worksheets within the Schedule D instructions, and are carried to the 1040.

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