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.
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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?
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.
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%
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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.
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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?
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.
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%