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29 July, 00:05

A taxpayer sells a warehouse for a recognized gain. Depreciation had been properly claimed on the property based on the straight-line method over a 39-year recovery period. Will the same amount of depreciation recapture result whether the taxpayer is an individual or a C corporation? Explain.

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  1. 29 July, 04:00
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    No, it will be different. There will not be any depreciation recapture for an individual taxpayer if the recognized profit is under $1250 with respect to the straight-line depreciation method and the service after 1986. However, a depreciation recapture will be treated from the recognized profit for a C corporation for sales that is approximately $1250 or more.

    Explanation:

    There will not be any depreciation recapture for an individual taxpayer if the recognized profit is under $1250 with respect to the straight-line depreciation method and the service after 1986. However, a depreciation recapture will be treated from the recognized profit for a C corporation for sales that is approximately $1250 or more.
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