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Income Tax Planning
Chapter 12: Business Assets/TAXATION AND SECTION 1250
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Chapter Study Session

Chapter 12: Business Assets

TAXATION AND SECTION 1250

01.Core Concepts

• Depreciation taken > straight-line depreciation is recaptured (at ordinary rates) • Unrecaptured Section 1250 depreciation • Also known as straight-line depreciation • Taxed at a flat 25% rate (or marginal rate, if lower) • Excess gain is capital gain under Section1231.