The justification for the gain is to offset the benefit of previously used depreciation allowances. While the gains attributed to accumulated depreciation are taxed at the section 1250 recapture tax rate, any remaining gains are only subject to the long-termcapital gains rateof 15%.1 Fast Fact ...
The depreciation recapture provisions are designed to prevent taxpayers from converting capital gains into ordinary income. (a) True (b) False Any unrealized gain or loss for the portfolio of available-for-sale securities is...