Discussion:Unrecaptured 1250 Gain
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Discussion Forum Index --> Tax Questions --> Unrecaptured 1250 Gain
Tonyryancpa (talk|edits) said: | 18 September 2006 |
| Taxpayer had a $444 unrecaptured 1250 gain reported to him by ML. Because his Schedule D had a loss on lines 15 & 16, the $444 never appeared on Line 19 of Sch D. The IRS then sent the taxpayer a notice and said it was including the $444 as ordinary income.
Has anyone had a similar experience and, if so, how did you force it into ordinary income? | |
| 18 September 2006 | |
| Where did the 4797 gain flow through to? Schedule D worksheet? | |
| 18 September 2006 | |
| It should show up on Sch D or Qualified Div. worksheet. | |
| 19 September 2006 | |
| From what I understand unrecaptured 1250 gain is taxed at a special rate of 25% not as ordinary income. It's the recaptured 1250 depreciation that is potentially taxed as ordinary income. | |
| 19 September 2006 | |
| Hi in order to have "unrecaptured" 1250 gain one generally has a capital gain to report of which a piece is 1250 gain taxed at a 25% rate on the sch D. The 1250 gain could be taxed as ordinary income but under circumstances that you usually dont see any more ( ie as "recaptured" 1250 gain as PD noted). So first go back and check the ML 1099 and see what you missed. Then contact the IRS to either agree or not. bye | |
| 19 September 2006 | |
| Believe the only way there can be ordinary income from 1250 is if property purchased before MACRS came into existence and was depreciated under ACRS with accelerated depreciation which would create "additional depreciation" to recapture - I think - may be should have looked. | |
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