Property Transactions: Gains, Losses & Like-Kind Exchanges

Read time: ~5 minutes

§1231: net gain → long-term capital; net loss → ordinary
§1245: recapture all depreciation as ordinary (personal property); §1250: excess accelerated over SL; unrecaptured §1250 gain taxed max 25%
Individual capital losses: $3,000/yr against ordinary, carry forward indefinitely
C corp capital losses: only offset capital gains; back 3, forward 5
§1031 now real property only; 45-day identification, 180-day completion
Gain recognized = lesser of realized gain or boot received; losses never recognized