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6 Cards in this Set
- Front
- Back
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Realized gain or loss
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Amount realized on disposition - adjusted tax bais= recognized gain or loss
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Capital loss can only be deducted to the extent of capital gains
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Why companies like it
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Capital gains corporation
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Taxed at ordinary rate
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Section 1231 Assets
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Net loss is an ordinary loss
Net gain is a capital gain |
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Depreciation recapture 1231 Assets
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Accelerated depreciation in excess of Straight Line is recaptures.
Corporations must recapture 20% of amount that would be ordinary under full depreciation recapture rule. |
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Recapture of Prior Year Net Section 1231 Loss
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Net 1231 gain is treated as ordinary income to the extent of unrecaptured Section 1231 losses
Any remaining net Section 1231 gain is treated as capital gain |
