TAX CONSEQUENCES SECTION 1245 ASSET (2 OF 2)
01.Core Concepts
Example 12.6 Example 12.5 Example 12.4 Example 12.3 $1,700 $1,200 $1,000 $1,100 Amount Realized $1,100 $1,100 $1,100 $1,100 Adjusted Basis $600 $100 ($100) $0 Gain / (Loss) Part ordinary gain ($400), part capital gain ($200) (Gain is more than depreciation taken) Ordinary Gain $100 (Gain is less than depreciation taken) Ordinary Loss ($100) None Tax Impact Taxpayer took too much depreciation and asset appreciated. Taxpayer took too much depreciation. Taxpayer took too little depreciation. Depreciation estimate was perfect. Economic Reality