1. Why do we have depreciation recapture? What does depreciationrecapture accomplish?2. What is the...1....

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Accounting

1. Why do we have depreciation recapture? What does depreciationrecapture accomplish?
2. What is the difference between 1245 recapture and 1250recapture? Is there a different tax rate?
3. How would you report 1231 gain on a tax return? How would youreport ordinary recapture?

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Depreciation recapture is the procedure that is being used in order to collect the tax on income in regard to profit or gain that is being made by the assessee in relation to sale of the asset on which depreciation had been See Answer

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In: Accounting1. Why do we have depreciation recapture? What does depreciationrecapture accomplish?2. What is the...1. Why do we have depreciation recapture? What does depreciationrecapture accomplish?2. What is the difference between 1245 recapture and 1250recapture? Is there a different tax rate?3. How would you report 1231 gain on a tax return? How would youreport ordinary recapture?