Due to Covid shut-downs, my partnership sold a commercial building at a large loss, far greater than the amount of prior depreciation. The calculations for the sale all appear on the long form K1 in TT Deluxe. The only place 1250 shows up is on line 9c Unrecaptured section 1250 gain, and mine is blank. Does it make sense that with a large loss there would be no recapture? Or should there have been 1250 recapture for the total prior depreciation, and a larger 1231 loss?
I'm pretty sure I had this figured out at the time but then got cancer in the meantime and don't remember. So I just want to make sure I did it right. Thanks!
there can be no 1250 recapture when depreciable real property is sold at a loss. The purpose of 1250 recapture is to tax gain up to the amount of depreciation at a rate that is usually higher that the rate on the remaining long-term cap gain portion
there can be no 1250 recapture when depreciable real property is sold at a loss. The purpose of 1250 recapture is to tax gain up to the amount of depreciation at a rate that is usually higher that the rate on the remaining long-term cap gain portion