- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Investors & landlords
First of all, the reason there is a carryover is that it's an installment sale. In an installment sale, you do not claim all of the income in the year of the sale; it is spread out. Thus, the Section 1250 recapture will also be over time.
Second, there is a difference between section 1250 unrecaptured depreciation and ordinary income recapture.
There is no ordinary income recapture (per Form 4797), because the depreciation of the rental is straight-line depreciation. No additional recapture is necessary, so Form 4797 line 31 will read $0 as will Form 6252 line 12.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
**Mark the post that answers your question by clicking on "Mark as Best Answer"
‎February 16, 2020
9:39 AM