Section 1250 Unrecapture Gain. CPA Exam.

I discuss section 1250 unrecapture gain.
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[@AlexNuaimi-k6y]

Thank you Prof.

[@AccountingLectures]

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[@wanglelife]

Where in the IRC does the 25% appear? It's not mentioned in section 1250 at all. All I could find in the IRC was Sec 1250 gain: what you mentioned at the beginning of the video regarding additional depreciation above the straight line.

[@liaoweien]

Thanks for the info. Depreciation recapture is taxed at an investor’s ordinary income tax rate, up to a maximum of 25%?
or
depreciation recapture is taxed at a flat rate of 25%? Big difference between those 2. Thanks in advance.

[@maryogie1941]

According to the video.., depreciation recapture is taxed at ordinary income tax rates. Accelerated depreciation less straight line.
Section 1250 non recaptured gain is taxed at 25%

[@davergee1]

The example question says the building was sold for $380k. The solution states the building was sold for $450k. The gain recognized on sale ($65k) is correct for sale proceeds of $380k. All good, but how does this affect your comments about capital gains if building was sold for $500k? I believe 500 - 315 = 165. This covers the full depreciation of 135 with 30 left over for capital gain. Do you concur?

[@MsNews2010]

You were corrected. The building was sold for $380K not $450K. I believe there was a typo there. This $65K gain will be taxed at a 25% rate because the building was sold for $380K, which is less than the $450K. Also, I believe he means the building was sold for $500K, and the $50K gain ($500K - $450K) would be taxed based on the taxpayer's individual income tax bracket (0%, 15%, or 20%).